The S&P 500 and Dow Jones Industrial Average both reached new record highs on Friday, marking six consecutive weeks of gains. The S&P 500 rose by 0.40% to close at 5,864.67, while the Dow Jones Industrial Average gained 0.09% to end at 43,275.91. The Nasdaq Composite also increased by 0.63% to 18,489.55, led by a surge in Netflix stock post-earnings.
This streak of positive performance was the longest in 2024 for both the Dow and S&P 500, ending the week 0.96% and 0.85% higher, respectively. The Nasdaq climbed by 0.80%. Netflix’s stock soared by 11% after beating earnings and revenue estimates for the third quarter.
Procter & Gamble also exceeded earnings expectations, although revenue fell short. Over 70 S&P 500 companies have reported earnings this season, with 75% beating expectations.
Despite expectations for increased market volatility leading up to the election, stocks may continue to rally through November. Chief investment strategist Rob Williams suggested that this unexpected trend could be due to investors already factoring in a potential win for Republican nominee Donald Trump, whose policies are perceived as more business-friendly in terms of taxes and regulations.
In contrast to typical election year patterns, where the market may be hesitant before performing well after the election, the current market may see stocks remaining strong leading up to the election, with volatility potentially occurring afterward.
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