The S&P 500 Did Something in April That's Been Witnessed Only 6 Times in 75 Years -- and It Points to a Very Specific Directional Move for Stocks

An ultra-rare event for Wall Street's benchmark index should have optimists smiling from ear to ear.

May 16, 2025 - 08:44
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The S&P 500 Did Something in April That's Been Witnessed Only 6 Times in 75 Years -- and It Points to a Very Specific Directional Move for Stocks

There is no shortage of ways for investors to grow their nominal wealth, including buying real estate, purchasing a Treasury bond or certificate of deposit (CD), or putting their money to work in various commodities, such as gold, silver, and oil. However, no asset class has delivered a higher average annual return over the last century than stocks.

Though multidecade charts for the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and growth-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC) point decisively higher, a narrower view of trading activity shows that volatility and uncertainty are perfectly normal on Wall Street.

Since the benchmark S&P 500 peaked on Feb. 19, the Dow Jones and S&P 500 both (somewhat briefly) dipped into correction territory. Meanwhile, the Nasdaq Composite entered its first bear market in three years.

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