US Stocks Soar Amid Record Highs This Election Year
Traders are celebrating as US stocks continue to break all-time high records in 2024, with the S&P 500 hitting new highs a staggering 31 times since the start of the year. Despite challenges like elevated interest rates, inflation, and economic uncertainty, investors remain optimistic, giving the markets the best start to an election year on record.
The S&P 500 is up 14.6% year-to-date, marking the best election year start ever, and nearly 31% higher than its low in October 2023. Analysts attribute the strong gains to the reduction in uncertainty with both major party nominees incumbents in the White House for the first time since 1892.
While the sustained rally has led some analysts to revise their year-end targets higher, concerns remain about potential market volatility, especially as election season approaches. The upcoming debate between President Joe Biden and former president Donald Trump could be a key event to watch in the coming months.
The global outlook on election-year markets also remains mixed, with uncertainties surrounding upcoming elections in France and the UK. In France, President Emmanuel Macron called for a snap parliamentary election after his party’s losses in European elections, adding to market volatility.
In other news, Alaska Airlines and its flight attendants union reached a tentative labor deal after over a year and a half of negotiations. Terms of the deal have not been disclosed, but the union has called it a “record contract,” likely containing significant pay raises for its members.
Meanwhile, Apple is banking on AI features to boost iPhone sales, but faces challenges due to ChatGPT, soon to be integrated into Siri, being banned in China. The company is looking for a Chinese AI partner to overcome regulatory hurdles and boost sales in its second-largest market.
