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Tax Day usually coincides with a jittery stock market as the S&amp;P 500 Index typically declines during the first half of April.

How Does The Stock Market Perform Ahead Of Tax Day? &#39;Rough&#39; At First, Data Shows

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The Next Recession: Redditors Say It&#39;s &#39;Usually Right After The Fed Pivots And Starts Cutting Rates&#39;

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There are tons of interesting <a href="https://www.benzinga.com/topic/taxes">tidbits about Tax Day</a>. 
According <a href="https://www.irs.gov/newsroom/irs-delivers-strong-2024-tax-filing-season-expands-services-for-millions-of-people-on-phones-in-person-and-online-with-expanded-funding">to</a> the Internal Revenue Service (IRS):
<ul>
<li>Officers answered more than one million taxpayer phone calls this season.</li>
<li>They processed over 100 million individual tax returns through April 6.</li>
<li>Tens of millions more filings will be made on the April 15 deadline.</li>
<li>About 19 million taxpayers will file extensions due Oct. 15.</li>
<li>More than $200 billion in refunds were already delivered. </li>
<li>The average refund was $3,011 — a 4.6% increase from last April's average of $2,878.</li>
</ul>
These numbers change yearly, but there&#8217;s at least one fairly consistent Tax-Day trend: a jittery stock market. 
According to <a href="https://www.bankrate.com/investing/the-tax-season-effect/">Bankrate</a>, citing data from S&amp;P Global&#8217;s Kensho unit, the first couple weeks of April are typically &#8220;rougher.&#8221;
Many taxpayers will liquidate stocks or tap their money market funds to fulfill immediate cash requirements.
And from 2000 to 2016, the S&amp;P 500 Index declined an average 0.2% during the first two weeks before Tax Day.
After Tax Day, it&#8217;s a different scenario. The S&amp;P 500 usually bounces back to finish April about 1.7% higher on average (climbing &#8220;an astonishing&#8221; 75% of the time, Bankrate notes). 
Per <a href="https://money.com/stocks-could-rise-after-tax-day/">Money.com</a>, the S&amp;P 500 index enjoyed an average gain of 0.83% in the week following the tax deadline from 1998 to 2022 (for 19 out of 25 years). The one-week median gain throughout the year is 0.31%.
In April, the market&#8217;s overall impact is minimal. Investors would be wise to stick to their long-term investment strategy and prioritize contributing to tax-advantaged retirement accounts (i.e., <a href="https://www.benzinga.com/money/what-is-a-401k">401k plans</a> and <a href="https://www.benzinga.com/money/best-ira-accounts">IRAs</a>).
Historically, the S&amp;P 500 has yielded around 10 percent annual gains. The goal is to stay invested over time rather than attempting to time the market. 
Financial advisors typically suggest that their clients invest in S&amp;P 500 index funds (see below) and remain focused on distant future outcomes rather than short-term fluctuations.
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/23/04/31731464/post-easter-spy-market-action-analyzing-s-p-500-etfs-historical-performance-after-the-ho">SPDR S&amp;P 500 ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</li>
<li>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</li>
<li>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</li>
<li>Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>)</li>
</ul>
Yardeni Research president Ed Yardeni predicts the S&amp;P 500 could surge <a href="https://www.benzinga.com/markets/equities/24/03/37724263/this-is-a-long-term-bull-market-market-expert-ed-yardeni-stands-by-his-5-400-year-end-s-p-500-ta">26% by 2026 to 6,500</a>.
"I think this is a long-term bull market,&#8221; the economist <a href="https://www.cnbc.com/video/2024/03/13/this-is-a-long-term-bull-market-says-ed-yardeni.html" target="_blank" rel="noreferrer noopener">told</a> CNBC in March. &#8220;I still got 5,400 by year-end and that was a pretty bold call a year ago, but right now that's looking pretty conservative, and why not more?"  
Now Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38247125/retail-sales-rises-more-than-expected-in-march-indicate-strong-consumer-spending">Retail Sales Rises More Than Expected In March, Indicate Strong Consumer Spending</a>
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How Does The Stock Market Perform Ahead Of Tax Day? 'Rough' At First, Data Shows

Concerns about economic downturns are resurfacing, <a href="https://www.benzinga.com/topic/reddit">at least on Reddit</a>.
With a chart depicting Treasury yield spreads, the post invited Redditors to weigh in on their predictions and insights regarding the <a href="https://www.benzinga.com/topic/recession">possibility of a recession</a>.
See below. 
<figure class="wp-block-embed is-type-rich is-provider-reddit wp-block-embed-reddit"> 
<div class="wp-block-embed__wrapper">
<blockquote class="reddit-embed-bq" style="height:500px" ><a href="https://www.reddit.com/r/wallstreetbets/comments/1c29lik/its_been_almost_2_years_since_the_yield_curve/">It&#8217;s been almost 2 years since the Yield Curve inverted. When&#8217;s that recession happening again?</a> by<a href="https://www.reddit.com/user/qscvg/">u/qscvg</a> in<a href="https://www.reddit.com/r/wallstreetbets/">wallstreetbets</a></blockquote>
<script async src="https://embed.reddit.com/widgets.js" charset="UTF-8"></script></div>
</figure>
Broad U.S. equity market ETFs such as the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>), the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) often serve as barometers of the economic situation.
Also Read: <a href="https://www.benzinga.com//node/38221695">Consumer Sentiment Worsens In April, Inflation Expectations Rise Further: Stocks Fall, Gold Surges Above $2,400</a>
Insights from Redditors:
<ol>
<li>Timing and Rate Cuts: User ElevationAV suggests that recessions often follow after the Federal Reserve pivots and begins cutting interest rates. However, RiskRiches challenges this notion, suggesting that weak market conditions typically precede rate cuts, leading into a recession.</li>
<li>Causes of Recessions: According to Western_Objective209, most recessions are triggered by prolonged periods of high interest rates. Expressing concern about the current economic climate, they predict a recession within the next three months, citing flat inflation as a contributing factor.</li>
<li>Market Expectations: Mountain-Bar-2878 speculates that markets would respond favorably to expected rate cuts if accompanied by a decrease in inflation. However, they anticipate a negative market reaction if rate cuts are prompted by unforeseen economic disruptions.</li>
<li>Interpreting Recession Definitions: Redditor RoundTableMaker highlights the complexity of defining a recession, distinguishing between stock market downturns and economic recessions. They note that while the stock market experienced a downturn last year, it did not correspond to an economic recession.</li>
</ol>
As Redditors engage in discourse about the probability of a recession, varying perspectives emerge regarding the timing, causes, and potential market implications. 
Some Reddit users anticipate a looming recession, citing historical patterns and current economic indicators. Others remain cautiously optimistic about the resilience of the markets. 
As discussions evolve, insights from online communities like r/wallstreetbets provide valuable perspectives for investors navigating uncertain economic terrain.
Read Next: <a href="https://www.benzinga.com//node/38085080">Never Mind Jerome Powell? Bullish Analyst Predicts Over 3 Rate Cuts This Year, Calls Recent Inflation Spike &#8216;Statistical Aberration&#8217;</a>
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The Next Recession: Redditors Say It's 'Usually Right After The Fed Pivots And Starts Cutting Rates'

The big three fund managers that jointly manage more than $23 trillion in assets are coming under the scrutiny of federal regulators over their large holdings in many <a href="https://www.benzinga.com/topic/banks">U.S. banks</a>.
BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), State Street Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) and Vanguard run funds that passively track the performances of equity indexes such as the S&amp;P 500. To achieve this, they attempt to match the weightings of stocks held in these funds, to the index weightings.
But in doing so, BlackRock and Vanguard have each built holdings of more than 10% of the shares at several banks, and this is worrying the Federal Deposit Insurance Corp (FDIC), one of the government institutions responsible for banking supervision.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png" alt="" class="wp-image-274036" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38047230/historic-s-p-500-rally-in-q1-flashes-bullish-signals-for-2024-only-the-ninth-time-s">Historic S&amp;P 500 Rally In Q1 Flashes Bullish Signals For 2024: &#8216;Only The Ninth Time Since 1940&#8217;</a>
<h2 class="wp-block-heading">Ten Percent Rule</h2>
At present, 10% ownership of shares is considered a threshold at which point an investor is considered to have a controlling interest in a bank. Investors must then seek regulatory permission to acquire shares beyond this threshold.
But fund managers are largely exempt from this requirement given their passive investment roles, although they can still use their share ownership to vote in shareholder meetings.
Some board members of the FDIC, are becoming concerned that the big fund managers could overlook their commitment to passive investment and exert greater influence over banks, given the size of their stakes.
Board member Jonathan McKernan <a href="https://www.wsj.com/finance/regulation/regulator-probes-blackrock-and-vanguard-over-huge-stakes-in-u-s-banks-b9f58619?mod=latest_headlines">told</a> the Wall Street Journal of his concerns and is seeking a curb on BlackRock and Vanguard from acquiring further shares above the 10% threshold while the FDIC investigates.
&#8220;We need to be doing more to actually confirm that the Big Three are not leveraging their large stakes to exert influence over FDIC-regulated banks,&#8221; he told the WSJ.
BlackRock owns the iShares series of exchange-traded funds. Its flagship ETF that follows the S&amp;P 500 is the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). Vanguard, meanwhile, manages the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), while State Street runs the SPDR series and the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is its big index tracker.
<h2 class="wp-block-heading">&#8216;Problem Of Twelve&#8217;</h2>
It&#8217;s not only regulators who have concerns over the influence of the big funds. In his 2023 book &#8220;The Problem of Twelve,&#8221; Harvard law professor John Coates asserts that roughly 12 people will have effectively seized power over the majority of U.S. public companies in the future.
He issued similar <a href="https://globalreports.columbia.edu/books/the-problem-of-twelve/">warnings</a> about &#8220;a small number of institutions [that] acquire the means to exert outsized influence over the politics and economy of a nation.&#8221;
He says in the book: &#8220;The Big Four index funds of Vanguard, State Street, Fidelity, and BlackRock control more than 20% of the votes of S&amp;P 500 companies — a concentration of power that's unprecedented in America.&#8221;
In its iShares US Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) BlackRock&#8217;s biggest banking holdings are in JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>). The Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) holds the same three stocks but with differing weightings.
Benzinga reached out to the FDIC for further details, but the agency said it was not commenting.
Now Read: <a href="https://www.benzinga.com/news/earnings/24/04/38021303/fanduel-success-drives-flutter-to-seek-primary-listing-on-nyse">FanDuel Success Drives Flutter To Seek Primary Listing On NYSE</a>
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The first quarter of 2024 proved to be an eventful period for investors as the S&amp;P 500 Index exhibited significant growth, surging by 9.94%. Among the various sectors comprising the index, two sectors stood out for their remarkable performance: energy <a href="https://www.benzinga.com/quote/XLC">and communication services</a>. 
The S&amp;P 500 Index is widely tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
Also Read: <a href="https://www.benzinga.com/markets/equities/24/03/37927561/goldman-sachs-predicts-15-upside-for-s-p-500-ai-boom-could-drive-market-to-6-000">Goldman Sachs Predicts 15% Upside For S&amp;P 500, AI Boom Could Drive Market To 6,000</a>
Let&#8217;s delve deeper into the standout sectors and the top-performing stocks within each.
<h2 class="wp-block-heading">Energy Sector: A Strong Rally (+13.47%)</h2>
The energy sector, represented by the SPDR Energy Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), experienced a notable upswing with a growth rate of 13.47% during Q1. This surge can be attributed to multiple factors, including the ongoing global economic recovery, increased demand for oil and gas, and supply chain disruptions impacting the sector.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="630" height="465" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM.png" alt="" class="wp-image-273757" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM-300x221.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></figure>
<a target="_blank" href="https://pro.benzinga.com/dashboard" rel="noreferrer noopener">Chart: Benzinga Pro</a>
Leading the charge in the energy sector were several key stocks that significantly contributed to its impressive performance:
<ol>
<li>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>): With a remarkable surge of 37.78%, Marathon Petroleum stock has emerged as one of the top-performing stocks in the energy sector. The company, which engages in refining, marketing, and transportation of petroleum products, benefited from rising oil prices and strong demand for refined products.</li>
<li>Valero Energy Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>): Valero Energy stock recorded a substantial gain of 32.80% during Q1. As one of the largest independent petroleum refining and marketing companies, Valero capitalized on favorable market conditions, robust refining margins, and operational efficiencies to drive its impressive performance.</li>
<li>Targa Resources Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRGP#NYSE">TRGP</a>): Targa Resources&#8217; stock witnessed a solid growth rate of 29.19% in Q1. The company, specializing in the gathering, processing, and storage of natural gas and natural gas liquids, benefited from increased demand for natural gas and higher commodity prices.</li>
<li>Diamondback Energy Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NYSE">FANG</a>): Diamondback Energy, an independent oil and natural gas company, saw its stock price surge by 28.61% during the first quarter. The company&#8217;s focus on efficient operations, cost discipline, and strategic asset development contributed to its strong performance amid favorable market conditions.</li>
<li>Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>): Phillips 66 is a diversified energy manufacturing and logistics company. Its stock delivered a solid performance with a growth rate of 22.68% in Q1. The company&#8217;s integrated business model, along with its focus on operational excellence and capital discipline, positioned it well to capitalize on improving market dynamics.</li>
</ol>
<h2 class="wp-block-heading">Communication Services: Riding High (+13.25%)</h2>
While the energy sector led the pack, communication services emerged as a close second in terms of performance. The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), which adequately represents the sector&#8217;s equity, posted a return of 13.25% over the past 3 months. This sector, encompassing companies involved in telecommunications, media, and entertainment, benefited from various factors driving demand for digital services and content consumption.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="630" height="465" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM.png" alt="" class="wp-image-273758" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM-300x221.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></figure>
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Here are the top-performing stocks within the communication services sector:
<ol>
<li>Meta Platforms, Inc. Class A (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): Formerly known as Facebook, Meta Platforms&#8217; stock witnessed an impressive surge of 38.82% in Q1. The company&#8217;s strategic focus on the metaverse, virtual reality technologies, and digital advertising propelled its stock to new heights, despite regulatory challenges and controversies.</li>
<li>Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>): Walt Disney stock experienced robust growth of 34.60% during the first quarter. The entertainment giant&#8217;s diversified portfolio of media networks, theme parks, and streaming services, coupled with successful content releases and the gradual recovery of the global tourism industry, contributed to its stellar performance.</li>
<li>Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>): Netflix is a leading streaming service provider. Netflix stock&#8217;s performance during the past quarter was solid, recording a growth rate of 26.17% in Q1. The company continued to benefit from the secular shift towards digital streaming, the success of its original content, and its expanding international subscriber base.</li>
<li>Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>): Verizon Communications is a well-known telecommunications company. Its stock posted a respectable gain of 12.15% during the first quarter. The company&#8217;s focus on expanding its 5G network infrastructure, improving customer experiences, and diversifying its revenue streams contributed to its steady growth.</li>
<li>Omnicom Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMC#NYSE">OMC</a>): Leading global marketing and corporate communications company, Omnicom Group&#8217;s stock price rose by 11.64% in Q1. The company&#8217;s diverse range of advertising, marketing, and public relations services, combined with its ability to adapt to evolving consumer trends, supported its solid performance.</li>
</ol>
The first quarter of 2024 witnessed robust performance across various sectors of the S&amp;P 500 index. The energy sector emerged as the top performer, while communication services followed closely behind. The financials sector, as represented by the SPDR Select Sector Fund &#8211; Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>), was up 11.30% while the industrials sector came in fourth at 9.65%. The industrials sector is tracked by the SPDR Select Sector Fund &#8211; Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>).
Read Next: <a href="https://www.benzinga.com/markets/equities/24/03/37763852/bizarrely-overvalued-s-p-500-could-plummet-49-if-recession-strikes-warns-top-strategist">&#8216;Bizarrely Overvalued&#8217;: S&amp;P 500 Could Plummet 49% If Recession Strikes, Warns Top Strategist</a>
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S&P 500's Q1 Standouts: Energy, Communication Sectors In The Lead — 10 Top-Performing Stocks

Interest rates are on everyone&#8217;s radar, but what&#8217;s the game plan amid the Federal Reserve&#8217;s decision to hold <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900527/federal-reserve-pushes-stocks-to-record-highs-as-rate-cuts-loom-nvidia-rallies-appl">steady for now</a>? 
Benzinga interviewed Greg McBride, CFA, Senior Vice President of Bankrate, for his exclusive insights on the current state of the economy and his expectations with the future.
Related: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900527/federal-reserve-pushes-stocks-to-record-highs-as-rate-cuts-loom-nvidia-rallies-appl">Federal Reserve Pushes Stocks To Record Highs As Rate Cuts Loom, Nvidia Rallies, Apple Faces Legal Woes: This Week In The Markets</a>
<h2 class="wp-block-heading">Interest Rates May Take The Stairs Coming Down</h2>
McBride offered some very actionable insights. In response to a question about the Fed keeping interest rates unchanged this time, McBride said, &#8220;Interest rates took the elevator going up, but they're going to take the stairs coming down.&#8221; 
Per McBride, savers can capitalize on potentially lucrative returns that outpace inflation, from savings accounts, money markets, and CDs, provided they shop around for optimal deals. For borrowers, the mantra remains clear: prioritize slashing high-cost credit card debt.
His advice? &#8220;Always make at least your minimum payment on time – you can always pay more later.&#8221; It&#8217;s about dodging those pesky overdraft fees and late charges.
<h2 class="wp-block-heading">Real Estate Enthusiasts, Brace Yourselves</h2>
McBride&#8217;s forecast suggests a seller&#8217;s market, with limited inventory dictating terms. And falling mortgage rates? They might not spell relief as home prices continue their upward trajectory. &#8220;The housing market will continue to be characterized by high home prices, high financing costs, and a limited number of homes for sale,&#8221; said McBride.
This should be good news for those invested in the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), the Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>), the Real Estate Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) or the iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>). Rising home prices often reflect a healthy real estate market, which can boost the value of real estate assets held within these ETFs.
Investors in mortgage ETFs such as the iShares MBS ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MBB#NYSE">MBB</a>) and the Vanguard Mortgage-Backed Securities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VMBS#NYSE">VMBS</a>) may see a mixed impact.
Rising home prices can increase the value of mortgage-backed securities (MBS) held within mortgage ETFs. This appreciation can lead to higher returns for investors holding these ETFs. However, higher home prices also make it more challenging for potential homebuyers to afford properties and/or to refinance their existing mortgages, potentially leading to decreased demand for mortgages.
Also Read: <a href="https://www.benzinga.com/real-estate/reit/24/03/37882885/10-real-estate-stocks-move-on-thursday-fed-rate-cut-possibility-sparks-rally-for-troubled-sector">10 Real Estate Stocks Move On Thursday: Fed Rate Cut Possibility Sparks Rally For Troubled Sector</a>
<h2 class="wp-block-heading">Legislative Acts May Sway Sentiment, Let Diversified ETFs Steer Your Ship</h2>
When questioned on legislative juggernauts like the CHIPS Act and Infrastructure Act that promise economic shifts, McBride&#8217;s advice is refreshingly pragmatic: &#8220;Investors are best served building a low-cost, well-diversified portfolio.&#8221; Forget chasing fleeting trends; it&#8217;s consistency that builds wealth, he says.
Exchange-traded funds are a low-cost, diversified way to gain exposure and build wealth consistently. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are the most popular and largest ETFs for U.S. equity exposure.
When asked about legislative acts impacting consumer sentiment and spending behavior, McBride said, &#8220;When Americans have jobs and paychecks coming in, the money gets spent.&#8221; Legislative acts may sway sentiment, but economic fundamentals steer the ship.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37922752/value-growth-stocks-trade-at-record-highs-but-long-term-leadership-lies-with-one-an">Value, Growth Stocks Trade At Record Highs But Long-Term Leadership Lies With One: Analyst</a>
Image created using artificial intelligence with DALL-E.

Exclusives

Interview

iShares Trust Dow Jones US Real Estate Fund Index

SCHH

VMBS

XLRE

EXCLUSIVE: Interest Rates Rode The Elevator Up, But Analyst Predicts They'll Take 'The Stairs Coming Down'

Good times for the market are often celebrated by investors. But when tailwinds are long-lasting, a question begins to creep up: are <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37553449/analyst-brushes-off-tech-bubble-concerns-citing-nvidias-strong-performance-the-grea">we in a bubble?</a>
The S&amp;P 500 has experienced a remarkable run in recent months, led by substantial growth stemming from the tech sector. Since the start of the year, the index has repeatedly closed at historic highs, <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/03/37548534/s-p-500-index-closes-at-record-heights-reaches-most-overbought-conditions-since-januar">beating the latest record last week</a>. The index is up over 32% in the past year.
Last week, Bank of America analysts raised the S&amp;P 500's one-year price target<a href="https://www.benzinga.com/markets/equities/24/03/37474744/bank-of-america-raises-s-p-500-price-target-to-5-400-warns-of-near-term-pullback"> from 5000 to 5400</a>, raising the expected growth by 5%. The analysts are expecting the index to yield 13% in the coming 12 months, yet they warned that the sustained growth could be preceded by a pull-back in the near term.
Analyst Savita Subramanian explained in a note, release on Monday, that following last week's price target correction, her team received pushback from investors and colleagues who "see the market is trading in bubble-like territory", and think it's time for "something else to break from the Fed&#8217;s aggressive monetary policy."
The upcoming release of inflation data for February, set for Tuesday of this week, will likely be the final piece of information that the agency will use to decide if interest rates<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37593207/february-inflation-will-guide-feds-policy-course-return-to-2-target-faces-challenge"> should be lowered</a> at its next FOMC meeting later this month.
Voices claiming that a full market bubble-burst<a href="https://www.benzinga.com/startups/24/02/37312725/this-tech-bubble-ceos-warning-resurfaces-after-nvidias-blockbuster-earnings-what-were-you-thinking"> is nearing have been loud</a> in recent weeks, with many drawing parallels between the recent tech rally and past market crashes.
Enthusiasm around generative AI, which fueled a new faith in Big Tech giants, has caused many analysts to <a href="https://www.benzinga.com/startups/24/02/37338210/apollos-chief-economist-sounds-alarm-on-ai-bubble-warning-its-bigger-than-the-1990s-tech-bubble">compare today's market with the run-up to the dot-com crash</a>.
Also read: <a href="https://www.benzinga.com/news/earnings/24/03/37593551/is-nvidia-stock-becoming-too-volatile-to-buy-best-performing-stock-on-s-p-500-tests-investors-nerve">Is Nvidia Stock Becoming Too Volatile To Buy? Best-Performing Stock On S&amp;P 500 Tests Investors&#8217; Nerves</a>
On Friday, the so-called "semiconductor mania" took the up-and-coming chip sector to new heights, surpassing peaks seen in the dot-com industry<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37562595/semiconductor-mania-surges-past-dot-com-bubbles-peak-abnormal-times-top-wall-street"> before the crash</a>.
One analysis from last month expected the bubble —if there is indeed one— to continue to inflate at least until 2025, <a href="https://www.benzinga.com/markets/equities/24/02/37115265/stock-market-bubble-to-inflate-until-2025-capital-economics-john-higgins-anticipates-s-p-500-to-">taking the S&amp;P 500 above the 6500 mark</a>, while other analysts continue to deny that <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37412148/are-we-in-a-stock-market-bubble-hedge-fund-guru-ray-dalio-weighs-in-sees-magnificen">there's a bubble altogether</a>.
In an effort to clear the air, Subramanian expanded on the reasons behind her decision to raise the S&amp;P 500's price target and explained that if we're in a similar trajectory to that of the dot-com bubble, today looks more like the mid-90's than anything else.
"U.S. equity sentiment is at almost precisely the same level as in 1995," wrote the analyst, based on her firm's Sell Side Indicator. It is neutral, not wildly bullish like it was in 1999, she noted.
Many of the subsectors of tech driving today's hype, namely AI and automation, are at a nascent state, similar to where personal computing and the internet were in the mid-90s.
No bubble In Sight: Subramanian laid down the conditions that need to come into play for a bubble to be confirmed. These are, in her view, a gap between price and intrinsic value, democratization of the asset class, and rampant speculation, often amplified by the use of <a href="https://www.benzinga.com/money/what-is-leverage">leverage</a>.
All these conditions were met in all high-profile market bubbles in history, including the dot-com crash, the housing bubble of 2007 and the tulip-mania of 1637. Today's market, however, doesn't meet that criteria.
While historically-high valuations (as those of today) can be a cause for alarm, they don't necessarily signify a bubble.
"Valuation matters," Subramanian writes, "But comparing a trailing PE today to a trailing PE of prior decades makes little sense given the index&#8217;s mix shift." While we're looking at the same index, it's currently composed of different companies, so we need to take past examples with a grain of salt, she adds.
"Furthermore, companies have been forced to abandon low quality EPS growth to focus on efficiency, yielding more predictable margins and warranting a higher multiple," she writes.
For a market bubble to burst, market sentiment needs to be at euphoric levels. Yet today's market sentiment is neutral at best, and euphoria is focused on specific sectors like AI or <a href="https://www.benzinga.com/news/24/03/37413349/ozempic-wegovy-other-weight-loss-drugs-wont-solve-global-obesity-crisis-affecting-1b-people-who-warn">weight-loss drugs</a>.&nbsp;
While the overall sentiment on equities has improved since last year, it is "nowhere near bullish levels of prior market peaks."
The S&amp;P 500 is closely monitored through ETFs such as the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>), providing various avenues for investment in its comprehensive performance.
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37429663/tech-rally-or-dotcom-d-j-vu-the-magnificent-sevens-secret-sauce-unveiled">Tech Rally Or Dotcom Déjà Vu? The Magnificent Seven&#8217;s Secret Sauce Unveiled</a>
Image created using artificial intelligence with Midjourney.

Tech

No Stock Market Bubble In Sight: 'Precisely The Same Level As In 1995,' Not Dot-Com Crash, Says Analyst

At the Bitcoin Atlantis conference in Madeira, Portugal, MicroStrategy Inc. Chairman Michael Saylor <a href="https://twitter.com/natbrunell/status/1765328439551099315?t=180">discussed Bitcoin and other topics with podcast host Natalie Brunell</a>. One of the points of conversation surrounded the recently approved spot Bitcoin exchange-traded funds ETFs and their ability to compete with other top asset classes and ETFs.
"We thought that maybe Bitcoin was a competitor to gold, but it has actually run up the leaderboard, and now it's starting to nip at the heels of the S&amp;P 500 Index ETFs," Saylor said.&nbsp;
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<li>About 22% of the adult population in the U.S. own a share of Bitcoin,<a href="https://www.benzinga.com/money/kraken"> how much would $10 get you today</a>?</li>
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Bitcoin and gold are viewed somewhat similarly by some investors, as they have a limited supply and can be seen as a hedge against inflation. However, gold has been around for millennia, while Bitcoin is barely 15 years old. Bitcoin has quickly risen the ranks and Saylor no longer sees gold as the main competitor to Bitcoin from an investment perspective.
Instead, Saylor believes that Bitcoin has the potential to compete with the largest ETFs in the world, namely the S&amp;P 500 index ETFs, such as SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>).&nbsp;
In terms of market cap, the S&amp;P 500 is leaps and bounds ahead of Bitcoin. It has a market cap of over <a href="https://www.slickcharts.com/sp500/marketcap#:~:text=Data%20Details,the%20outstanding%20float%20share%20count.">$40 trillion</a>, well above Bitcoin's $1.3 trillion. However, Bitcoin's recent performance, according to Saylor, could be a sign that Bitcoin is ready to compete with some of the largest funds in the world.&nbsp;
The spot Bitcoin ETFs were launched less than two months ago but have already surpassed more than $50 billion in combined total assets, <a href="https://twitter.com/EricBalchunas/status/1765024533537255577?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1765025445672538516%7Ctwgr%5E948d683de57e43788170aaf755fbdc5da9fd52eb%7Ctwcon%5Es2_&amp;ref_url=https%3A%2F%2Fdecrypt.co%2F220434%2Fbitcoin-etf-versus-gold-sp500-index">according to</a> Bloomberg senior ETF analyst Eric Balchunas. The ETFs also saw a record amount of inflows during their first 30 days.
<hr class="wp-block-separator has-alpha-channel-opacity" />
Trending: Large boom in cryptocurrency and metaverse interest as BTC skyrockets —<a href="https://www.benzinga.com/money/ceek"> has Apple Vision Pro increased the demand for virtual real estate?</a>
<hr class="wp-block-separator has-alpha-channel-opacity" />
"These ETFs opened up an entire financial world of awareness, opportunity and functionality to the 99% of mainstream investors. You really can't underestimate just how profoundly important that is to the entire network," Saylor noted.
Saylor and Microstrategy are the largest institutional holders of Bitcoin, amassing a stash of 193,000 Bitcoins over the past several years. The investment as a whole is up more than 100% and is currently worth over $13.5 billion.
Despite the hugely successful investment, Saylor does not see the company selling any time soon. When asked about a potential exit strategy, Saylor said, "<a href="https://finance.yahoo.com/news/asked-whether-firm-sell-193-210917384.html">Bitcoin is the exit strategy</a>."
Not only does Saylor not see an exit in the near future, but he is also taking on debt to buy more Bitcoin. MicroStrategy recently sold $700 million of convertible senior notes to buy even more Bitcoin.&nbsp;
As Bitcoin and spot ETFs continue to perform well and see more investment, it will be interesting to see how it plays out. Will Bitcoin ETFs catch up to the S&amp;P 500 ETFs? Only time will tell.
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<li>Bitcoin To $100,000?<a href="https://www.benzinga.com/money/bydfi-btc-100k"> Here&#8217;s what gold bug Peter Schiff said could happen on Anthony Pompliano&#8217;s podcast.</a></li>
<li>The<a href="https://www.benzinga.com/money/kraken-2"> last-standing top crypto exchange without a major security breach</a> offers what now?</li>
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Cryptocurrency

Michael Saylor: Bitcoin Can Compete With S&P 500 ETFs

The U.S. stock market continues its unchallenged bull run, with Wall Street notching yet another week of record-breaking highs for the S&amp;P 500 <a href="https://www.benzinga.com/news/earnings/24/03/37427925/s-p-500-nasdaq-100-hit-record-highs-as-dollar-treasury-yields-weaken-chipmakers-shine-nycb-sinks-wh">and Nasdaq 100 indices.</a>
This ongoing surge demonstrates the remarkable strength of the bullish sentiment, with stocks marking their 16th positive week out of the last 18. Since late October, this rally has propelled the S&amp;P 500 index by 25% and the Nasdaq 100 by 30%.
The momentum on Wall Street has also catapulted the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – the world&#8217;s largest exchange traded fund – to a historic milestone, surpassing $500 billion in assets under management for the first time ever.
Trailing behind the SPY are BlackRock&#8217;s iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) with $442 billion, and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) with $413 billion under management. 
Other notable milestones were achieved among S&amp;P 500 components during Friday&#8217;s session. Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) reached a market capitalization exceeding $2 trillion, Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) surpassed $700 billion and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) overtook Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) to become the eighth-most valuable company.
<h2 class="wp-block-heading">Chart: SPY Is First ETF To Reach $500 Billion In AUM</h2>
<img decoding="async" src="https://www.benzinga.com/files/images/story/2024/1709327108_0.png" alt="" />
<h2 class="wp-block-heading">Top-Performing S&amp;P 500 Stocks Friday</h2>
The following are the five top-performing stocks within the S&amp;P 500 on Friday: 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Stock Name</th>
<th>Sector</th>
<th>Price</th>
<th>1-Day Return %</th>
</tr>
</thead>
<tbody>
<tr>
<td>NetApp, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTAP#NASDAQ">NTAP</a>)</td>
<td>Information Technology</td>
<td>106.93</td>
<td>19.98%</td>
</tr>
<tr>
<td>The Cooper Companies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COO#NASDAQ">COO</a>)</td>
<td>Health Care</td>
<td>102.07</td>
<td>9.05</td>
</tr>
<tr>
<td>Western Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDC#NASDAQ">WDC</a>)</td>
<td>Information Technology</td>
<td>63.99</td>
<td>7.61</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>Information Technology</td>
<td>1,392.56</td>
<td>7.08</td>
</tr>
<tr>
<td>DexCom, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DXCM#NASDAQ">DXCM</a>)</td>
<td>Health Care</td>
<td>121.19</td>
<td>5.32</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">Top 10 Performing S&amp;P 500 Stocks Year-To-Date</h2>
The top-performing S&amp;P 500 stocks year-to-date are as follows:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Company</td>
<td>YTD Return</td>
<td>Market Cap</td>
</tr>
<tr>
<td>NVIDIA Corporation</td>
<td>65.43%</td>
<td>$2,016B</td>
</tr>
<tr>
<td>Constellation Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>44.19%</td>
<td>$53.37B</td>
</tr>
<tr>
<td>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>41.97%</td>
<td>$1,281.15B</td>
</tr>
<tr>
<td>Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>36.55%</td>
<td>$325.24B</td>
</tr>
<tr>
<td>Eli Lilly and Company </td>
<td>33.72%</td>
<td>$701.64B</td>
</tr>
<tr>
<td>Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>)</td>
<td>31.30%</td>
<td>$167.86B</td>
</tr>
<tr>
<td>Applied Materials Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>)</td>
<td>29.60%</td>
<td>$174.53B</td>
</tr>
<tr>
<td>Ralph Lauren Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RL#NYSE">RL</a>)</td>
<td>28.68%</td>
<td>$11.86B</td>
</tr>
<tr>
<td>Tapestry, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPR#NYSE">TPR</a>)</td>
<td>28.57%</td>
<td>$10.85B</td>
</tr>
<tr>
<td>Catalent, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTLT#NYSE">CTLT</a>)</td>
<td>28.18%</td>
<td>$10.34B</td>
</tr>
</tbody>
</table>
</figure>
Read now: <a href="https://www.benzinga.com/general/biotech/24/02/37408271/top-stocks-not-named-nvidia-you-need-to-know-about-in-2024-heres-what-investors-think-wall-street">Top Stocks Not Named Nvidia You Need To Know About In 2024: Here&#8217;s What Investors Think About Them (Wall Street Vs. Reddit)</a>
Photo via Shutterstock.

AMAT

AVGO

CTLT

DXCM

JNPR

NTAP

NVDA

TSLA

UBER

Record-High S&P 500 Propels SPY ETF To $500-Billion Milestone, Nvidia Tops $2 Trillion, Broadcom Surpasses Tesla

The U.S. tech rally has been nothing short of spectacular over the past year. According to Peter Callahan, a sector specialist at Goldman Sachs Global Banking &amp; Markets, it&#8217;s not just a fleeting phenomenon but is rooted in sustainable <a href="https://www.benzinga.com/topic/magnificent-seven">and enduring fundamentals</a>.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="380" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM-1024x380.png" alt="" class="wp-image-235883" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM-1024x380.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM-300x111.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM-768x285.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM.png 1322w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
The S&amp;P 500 Index is up over 25% in the past year. 
This is evident by the price appreciation seen in ETFs tracking it — the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) and the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>).
At the forefront of this surge are the Magnificent Seven tech stocks. These have played a pivotal role in driving the S&amp;P 500&#8217;s recent rally. 
The chart above shows how the Magnificent Seven tech stocks have performed over the past year. Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) has led the surge, followed by Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) next. These stocks have returned 234.86%, 164.89% and 86.70%, respectively, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> data.
Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) come next in the elite group. These have clocked 61.84%, 48.09%, 19.17% and 1.85% on the charts, respectively, over the past year as of Feb. 26, 2024.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/02/37304905/analyst-who-coined-magnificent-7-label-declares-end-of-an-era-i-dont-see-these-seven-names-risin">Analyst Who Coined &#8216;Magnificent 7&#8217; Label Declares End Of An Era: &#8216;I Don&#8217;t See These Seven Names Rising Together&#8217;</a>
<h3 class="wp-block-heading">What&#8217;s Behind The Tech Rally? Callahan Weighs In</h3>
Since the beginning of 2023, these seven stocks have outshined the rest, marking an impressive 90% surge. 
On the other hand, the other 493 stocks in the S&amp;P 500 index have seen a comparatively modest 18% increase. Despite concerns about potential overvaluation and echoes of the dotcom bubble, Callahan sees a different narrative. He attributes the success of the Magnificent Seven to their strategic focus on generative AI.
<h3 class="wp-block-heading">Beyond The Hype</h3>
While the tech sector has witnessed a surge in investor sentiment due to the rise of AI, it&#8217;s not just hype, says Callahan. Real revenue and earnings growth accompany the excitement, he noted. In the fourth quarter, the Magnificent Seven reported a substantial 15% year-over-year increase in revenues. 
Looking ahead, an annual sales growth of 12% is anticipated through 2026, reflecting a robust and sustained trajectory. Callahan <a href="https://www.goldmansachs.com/intelligence/pages/tech-driven-rally-built-on-strong-foundation.html">asserts</a>, &#8220;This rally has been built on a strong foundation,&#8221; expressing confidence in the continued success of these tech giants fueled by the transformative power of generative AI.
As investors navigate the tech landscape, the Magnificent Seven&#8217;s focus on sustainable growth and cutting-edge technologies like generative AI positions them as key players in the ongoing tech revolution. 
Beyond the concerns of a potential bubble, the fundamentals driving this tech rally suggest a resilient and promising journey for the Magnificent Seven and, by extension, the broader tech landscape.
Read Next: <a href="http://Jim Cramer Evaluates Nvidia, Amazon And Other Magnificent 7 Earnings: 'The Seven Truly Did Acquit Themselves Well'">Jim Cramer Evaluates Nvidia, Amazon And Other Magnificent 7 Earnings: &#8216;The Seven Truly Did Acquit Themselves Well&#8217;</a>
Image: Shutterstock

Analyst Ratings

AAPL

AMZN

GOOG

GOOGL

MSFT

Tech Rally Or Dotcom Déjà Vu? The Magnificent Seven's Secret Sauce Unveiled

The S&amp;P 500 index, a bellwether for the U.S. stock market, ends February with a 5.3% surge, marking its fourth <a href="https://www.benzinga.com/markets">consecutive month of gains.</a>
Since the tumultuous days of late October, the broader stock market rally now nears an impressive 25% increase.
The tech-heavy Nasdaq 100 also paints a picture of extraordinary resilience. It surpassed the 18,000-point mark and closed the month at an all-time high. The surge in the Nasdaq 100, up 28% since late October, offers a testament to the unwavering appetite for tech-oriented investments. 
See Also: <a href="https://www.benzinga.com/markets/equities/24/02/37062104/joe-biden-says-stock-market-strength-is-sign-of-confidence-in-americas-economy-good-news">Joe Biden Says Stock Market Strength Is &#8216;Sign Of Confidence&#8217; In America&#8217;s Economy: &#8216;Good News&#8217;</a>
Within the captivating realm of exchange-traded funds (ETFs), here we highlight those commanding the largest influx of money throughout February.
Among these standouts, six offer exposure to broader equity indices, two pivots towards Treasury bonds, while one extends its focus on Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).
<h3 class="wp-block-heading">Top 10 US ETFs By Inflows In February</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>Fund Flows (1M)</th>
<th>AUM</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>6.815B</td>
<td>413.71B</td>
</tr>
<tr>
<td>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</td>
<td>5.881B</td>
<td>442.69B</td>
</tr>
<tr>
<td>Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>)</td>
<td>5.786B</td>
<td>69.413B</td>
</tr>
<tr>
<td>iShares Bitcoin Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NYSE">IBIT</a>)</td>
<td>3.891B</td>
<td>8.07B</td>
</tr>
<tr>
<td>Vanguard Intermediate-Term Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGIT#NYSE">VGIT</a>)</td>
<td>3.1B</td>
<td>24.816B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPLG#NYSE">SPLG</a>)</td>
<td>3.066B</td>
<td>31.938B</td>
</tr>
<tr>
<td>Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>)</td>
<td>2.819B</td>
<td>374.803B</td>
</tr>
<tr>
<td>iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>)</td>
<td>2.348B</td>
<td>101.583B</td>
</tr>
<tr>
<td>Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>1.874B</td>
<td>252.624B</td>
</tr>
<tr>
<td>iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>)</td>
<td>1.566B</td>
<td>48.99B</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: TradingView</figcaption></figure>
On Friday, Feb. 9, the S&amp;P 500 index <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37041128/s-p-500-claims-5-000-as-tech-soars-bitcoin-rockets-above-47-000-whats-driving-marke" target="_blank" rel="noreferrer noopener">topped 5,000 for the first time</a>.
This milestone prompted remarks from President Joe Biden. &#8220;The stock market going strong is a sign of confidence in America's economy,&#8221; he said on social media.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37402333/exclusive-magnificent-7-takes-center-stage-in-roundhills-expanded-etf-lineup-with-i">EXCLUSIVE: Magnificent 7 Takes Center Stage In Roundhill&#8217;s Expanded ETF Lineup With Inverse And Leveraged Options</a>
Image: Shutterstock

Specialty ETFs

$BTC

IBIT

SPLG

iShares Trust Barclays 20+ Year Treasury Bond Fund

VGIT

Investors Poured Nearly $40B Into 10 ETFs In February: Find Out What You're Overlooking

Joe Biden defeated Donald Trump in the 2020 presidential election to become the 46th president of the U.S. The two candidates currently stand as the leading contenders for their respective parties for the <a href="https://www.benzinga.com/topic/2024-election">2024 presidential election.</a>
Here's a look at how the stock market has performed since Biden took office and how it compares to the time Trump was in office.
 What Happened: Biden<a href="https://www.benzinga.com/news/20/11/18261020/joe-biden-wins-2020-presidential-election-as-donald-trump-pushes-lawsuits-recounts"> was sworn in as president</a> on Jan. 20, 2021 with an inauguration ceremony at the U.S. Capitol building.
The markets rallied after Biden won the 2020 presidential election on Nov. 3, 2020, and continued upwards during his first year as president. The S&amp;P 500 gained 37.4% during <a href="https://www.benzinga.com/news/22/01/25137004/biden-vs-trump-how-did-stock-market-returns-compare-after-their-first-year-as-president">Biden's first year</a> in office, which was the best one-year market return under a president since Harry Truman in 1945.
In 2022, the S&amp;P 500 experienced a decline of over 19%, representing the largest annual drop since 2008.
The early years of Biden's presidency were met with several economic hardships including the recovery from the COVID-19 pandemic and a period of high inflation.
The economy remains a key issue for voters ahead of the 2024 election, and some have blamed Biden for not doing enough to help consumers who are struggling with higher prices and living expenses.
A recent Morning Consult poll of voters in the seven swing states determined the <a href="https://www.benzinga.com/general/politics/24/02/36917292/trump-dominates-biden-in-swing-states-how-these-2-big-issues-could-change-the-2024-presidential-">economy as the biggest factor </a>for the 2024 election at 36% of the vote, ranking ahead of immigration (13%), democracy (11%) and abortion (6%) as the top issue.
The economy ranked first in each of the seven states and voters said they were more confident in Trump when it came to the economy.
The stock market's performance during previous presidencies has been a hot topic of late with Biden launching <a href="https://www.benzinga.com/news/23/12/36272093/biden-trolls-trumps-prediction-highlights-stock-market-success-in-latest-campaign-video-good-one-don">a campaign video </a>that highlights the stock market indexes, like the S&amp;P 500 hitting all-time highs.
The video is a response to Trump's prediction that there would be an economic downturn with Biden in office.
"Good one, Donald," Biden's X account said while sharing the video.
Related Link:<a href="https://www.benzinga.com/markets/equities/24/01/36751463/joe-biden-mocks-trump-for-forecasting-a-stock-market-collapse-akin-to-the-great-depression-good-"> Joe Biden Mocks Trump For Forecasting A Stock Market Collapse Akin To The Great Depression: &#8216;Good One, Donald&#8217;</a>
 Investing $1,000 in S&amp;P 500: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500 Index, opened for trading at $381.11 on Jan. 20, 2021, the day Biden was inaugurated as the 46th president of the U.S.
A $1,000 investment could have purchased 2.62 SPY shares on inauguration day. The investment would be worth $1,330.33 today, based on a price of $507.76 for the SPY at the time of writing.
An investment of $1,000 would have increased by 33.0% since Biden assumed the presidency. This return comes shortly after the two-year anniversary of Biden taking office. The average yearly gain during Biden's tenure stands at around 15.9% for the past 25 months.
During Trump&#8217;s four years as president, the S&amp;P 500&nbsp;<a href="https://www.benzinga.com/markets/futures/18/01/11066769/the-stock-markets-rally-under-trump-among-the-best-ever-heres-how-his" target="_blank" rel="noreferrer noopener">had average annual gains</a>&nbsp;of 14.5%. The SPDR S&amp;P 500 ETF Trust was up a <a href="https://www.cnn.com/2021/01/20/investing/dow-stock-market-trump-presidency/index.html#:~:text=Between%20Trump's%20inauguration%20in%202017,its%20worst%20day%20in%20decades.">total of around</a> 67% during the four years under Trump, making it one of the best four-year returns for the S&amp;P 500 in recent history.
Although Biden can point to higher stock market prices and record peaks during his tenure, the stock market's overall performance and annual average returns under Trump still surpassed those during Biden's time in office.
As the 2024 presidential election approaches, the economy and stock market returns are likely to become key topics of discussion.
Investors who expect the stock market to continue to hit new highs in 2024 will likely look at broad market index ETFs like the SPY or the&nbsp;iShares S&amp;P 500 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) or the&nbsp;Vanguard S&amp;P 500 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
Read Next: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/23/12/36416440/why-buy-stocks-in-a-presidential-election-year-history-has-a-crazy-stat-for-you">Why Buy Stocks In A Presidential Election Year? History Has A Crazy Stat For You</a>
Photo: Shutterstock

Education

Politics

If You Invested In The S&P 500 When Joe Biden Became President, Here's How Much You'd Have Today

Investing in your 40s can be a daunting task, especially for those who are relatively <a href="https://www.benzinga.com/topic/retail-investors">new to the game</a>. 
A Reddit user, u/kickinwood, recently reached out to the community seeking advice beyond the hunt for the &#8220;next NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).&#8221; 
The post received several thoughtful responses, providing valuable insights into general market strategies and <a href="https://www.benzinga.com/topic/investing">specific investment recommendations</a>.
<figure class="wp-block-embed is-type-rich is-provider-reddit wp-block-embed-reddit"> 
<div class="wp-block-embed__wrapper">
<blockquote class="reddit-embed-bq" style="height:316px" ><a href="https://www.reddit.com/r/stocks/comments/1apm9zg/any_tips_beyond_whats_the_next_nvidia/">Any tips beyond &#8220;What&#8217;s the next Nvidia?&#8221;</a> by<a href="https://www.reddit.com/user/kickinwood/">u/kickinwood</a> in<a href="https://www.reddit.com/r/stocks/">stocks</a></blockquote>
<script async src="https://embed.reddit.com/widgets.js" charset="UTF-8"></script></div>
</figure>
One Redditor, fortinvestech, shared advice tailored to someone in their 40s, emphasizing the importance of being aggressive until retirement or needing a higher level of safety. 
The suggestion included allocating funds into sectoral ETFs, with a focus on tech and hardware for growth, high-dividend ETFs for income, and a small position in the S&amp;P 500 Index. This approach aims to balance growth and safety, gradually increasing exposure to the S&amp;P 500 over time.
The SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are some popular ways to gain exposure to the S&amp;P 500.
Another Redditor, msalem311, recommended JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JEPQ#NASDAQ">JEPQ</a>), a Nasdaq-tracking ETF with lower volatility and a respectable 8% dividend yield. The user, who identified as a financial advisor, highlighted JEPQ as a balanced option for both growth and income.
Pentaborane stressed the importance of thorough research for effective stock picking, suggesting a focus on specific sectors and companies with strong leadership and revenue potential at scale. Recommendations included companies like UiPath Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PATH#NYSE">PATH</a>), Photronics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLAB#NASDAQ">PLAB</a>), and Camtek Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAMT#NASDAQ">CAMT</a>) as well as those in the Nvidia supply chain like ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>).
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36749218/asml-stock-top-analyst-pick-as-a-fifo-beneficiary-with-21-upside-ahead-of-q4-earnin">ASML Stock: Top Analyst Pick As A &#8216;FIFO&#8217; Beneficiary With 21% Upside Ahead Of Q4 Earnings</a>
Another Reddit member, jhuey0991, shared personal success stories, emphasizing the profitability of investing in companies facing short-term challenges but with strong fundamentals. 
Examples included AbbVie Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>), Walt Disney (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), RTX Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), and Medtronic PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MDT#NYSE">MDT</a>). The Redditor also expressed confidence in Rocket Lab USA Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) and PayPal Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>), particularly if the latter rebranded to Venmo.
 For justbrowsinginpeace, Rocket Lab is worth considering because the space industry is the &#8220;next gold rush.&#8221;
Overall, the responses provided a mix of general investment strategies and specific stock recommendations, emphasizing the importance of diversification, research, and a balanced approach tailored to individual risk tolerance and financial goals. 
These insights serve as a valuable resource for those navigating the complexities of investing later in life.
Read Next: <a href="https://www.benzinga.com/markets/24/02/36939451/should-you-invest-in-stocks-at-all-time-highs">Should You Invest In Stocks at All-Time Highs?</a>
Image: Shutterstock

ABBV

ASML

CAMT

JEPQ

PATH

PLAB

PYPL

RKLB

SMCI

Beyond Nvidia: How To Navigate Investing In Your 40s — Insights From Reddit

The first U.S-based exchange-traded fund celebrates another birthday Monday and remains one of the <a href="https://www.benzinga.com/etfs">most popular ETFs today.</a>
Here's a look at the history of the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and how much an investment at launch would be worth today.
What Happened: Launched with seed funding of $6.5 million, the SPDR S&amp;P 500 ETF Trust<a href="https://www.benzinga.com/news/23/01/30529288/worlds-first-etf-turns-30-heres-how-much-money-youd-have-if-you-invested-1-000-when-it-launched"> became the first U.S. ETF </a>on Jan. 22, 1993.
The ETF was approved by the U.S. Securities and Exchange Commission several years after State Street Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) applied for the fund.
Initial interest in the ETF was poor and the fund was almost closed before investors came around to the idea of using ETFs as investment vehicles.
The success of the SPY ETF led to other financial institutions launching similar ETFs that track the S&amp;P 500 Index, one of the largest and most well-known stock market indexes.
The iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and Vanguard S&amp;P 500 Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) launched in 2000 and 2010, respectively.
Today, the three ETFs that track the S&amp;P 500 are the largest in the world according to <a href="https://etfdb.com/compare/market-cap/">ETFDB </a>with the following assets under management:
SPY: $474 million
IVV: $405 million
VOO: $377 million
After posting its worst one-year performance in more than a decade for the 2022 year, the S&amp;P 500 Index, which features 500 leading U.S. publicly traded companies, with a primary emphasis on market capitalization, saw outperformance in 2023, ending the year up over 20% and riding a streak of winning weeks.
Last week, the S&amp;P 500 <a href="https://www.benzinga.com/markets/equities/24/01/36701851/s-p-500-shatters-records-the-top-performing-stocks-in-january-2024">hit a new all-time high,</a> boosted by soaring valuations for technology stocks, particularly those with increased exposure to the growing artificial intelligence segment.
Here are the current top <a href="https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-trust-spy">holdings </a>of the SPDR S&amp;P 500 ETF at the time of writing:
<ol>
<li>Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): 7.3%</li>
<li>Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): 6.9%</li>
<li>Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): 3.9%, both classes of stock</li>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): 3.6%</li>
<li>Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): 3.5%</li>
</ol>
Related Link: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/23/12/36416440/why-buy-stocks-in-a-presidential-election-year-history-has-a-crazy-stat-for-you">Why Buy Stocks In A Presidential Election Year? History Has A Crazy Stat For You</a>
Investing $1,000 in SPY Stock: While the idea of ETFs was new at the time, investors who followed State Street into the idea of a new investment vehicle to track the S&amp;P 500 would have been pleasantly rewarded.
The SPDR S&amp;P 500 ETF traded at around $43.61 in its first days of trading. A $1,000 investment could have purchased 22.93 shares at the time.
The $1,000 investment would be worth $11,087.34 today based on a price of $483.53 for the SPY at the time of writing. This represents a hypothetical return of $1,008.7% over the past 31 years.
Investors who bought the SPY on Jan. 22, 1993, based on a price of $25.02 adjusted for dividends would have an even larger return. The SPY has an adjusted price of $25.02 when adjusted for dividends, which means a $1,000 investment could have purchased 39.97 shares.
The $1,000 investment would be worth $19,326.69 today. This represents a hypothetical return of 1,932.7% over the past 31 years.
Read Next: <a href="https://www.benzinga.com/23/12/36062039/where-is-s-p-500-headed-in-2024">Where Is S&amp;P 500 Headed In 2024?</a>
Photo: Shutterstock

Happy Birthday S&P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here's How Much You'd Have Today

The S&amp;P 500 Index, a widely-followed gauge of the U.S. stock market, achieved a fresh <a href="https://www.benzinga.com/markets/equities/24/01/36699753/s-p-500-nasdaq-jointly-hit-new-all-time-highs-as-ai-driven-stocks-defy-gravity-whats-driving-mar">all-time high Friday</a>. The index reached a level of 4,826 during intraday trading, surpassing previous peak levels seen over two years <a href="https://www.benzinga.com/markets">ago on Jan. 4, 2021</a>.
Similarly, the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which closely mirrors the index&#8217;s performance, marked a new all-time high of $481 on Dec. 19. 
Other ETFs tracking the S&amp;P 500, such as the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), also achieved new highs of $483.29 and $441.98, respectively.
The S&amp;P 500 is up 18% since its October 2023 lows and 23% compared to the same day last year. 
The broader U.S. stock market is on course to conclude its 11th positive week out of the last 12, highlighting the impressive winter rally.
<h3 class="wp-block-heading">Chart: S&amp;P 500 Sets New Record Highs</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="452" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-1024x452.png" alt="" class="wp-image-188220" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-1024x452.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-300x133.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-768x339.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-1536x678.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Key Drivers Behind The Surge</h3>
Three key dynamics have fueled U.S. stocks over the last quarter: 
<ol>
<li>Tech stocks&#8217; impressive performance. </li>
<li>Inflation coming down, economy holding up.</li>
<li>Markets pricing Fed rate cuts.</li>
</ol>
<h3 class="wp-block-heading">Tech Stocks Drive The Rally</h3>
Technology stocks have been the driving force behind the surge of the S&amp;P 500 to new all-time highs. The technology sector carries a significant weight of 30% within the S&amp;P 500, and when combined with communication services stocks, their collective weight approaches nearly 40%.
With the Nasdaq 100 Index also reaching record highs and tech stocks outperforming the overall market, the S&amp;P 500 experienced upward pressure.
Remarkably, an equally-weighted index comprising the &#8220;Magnificent Seven,&#8221; which includes companies like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), has surged by an impressive 110%.
A significant contributing factor to the broader tech rally has been the ascension of artificial intelligence. Within this context, the semiconductor industry has emerged as the standout performer, driven by surging demand for chips.
<h3 class="wp-block-heading">Inflation Falls, Consumers Show Resilience</h3>
The U.S. inflation rate has experienced a significant decline since reaching its peak in June 2022. In December, the annual inflation rate stood at 3.4%, nearly half the increase compared to the previous year. This development has sparked optimism among investors that price pressures are on track to align with the Fed&#8217;s 2% target.
The U.S. consumer sector and labor market have displayed remarkable resilience despite elevated interest rates.
Retail sales were 5.6% higher in December 2023 compared to the previous year, setting a <a href="https://www.benzinga.com/markets/equities/24/01/36659850/annual-retail-sales-surge-by-5-6-in-december-hit-10-month-high-showcase-robust-consumer-demand">10-month record increase. </a>
Consumer confidence, as measured by the University of Michigan&#8217;s index, exceeded expectations in January, reaching levels not seen in over two-and-a-half years.
The job market continues to exhibit robust health, with the U.S. economy adding 216,000 jobs in December 2023, surpassing the expected 170,000, and weekly jobless claims falling to their lowest levels since September 2022.&#8221;
Read also: <a href="https://www.benzinga.com/markets/equities/24/01/36697268/us-consumer-sentiment-tops-estimates-in-january-hits-highest-level-since-july-2021-fridays-econo">US Consumer Sentiment Tops Estimates In January, Hits Highest Level Since July 2021: Friday&#8217;s Economic Digest</a>
<h3 class="wp-block-heading">Markets Betting On Rate Cuts</h3>
In December, the Federal Reserve decided to keep interest rates unchanged for the third consecutive meeting, effectively signaling the end of its policy tightening cycle. Fed Chair Jerome Powell has expressed openness to potential rate cuts in 2024 provided that economic data supports the Fed&#8217;s efforts to bring inflation back to its target level.
According to the Federal Reserve&#8217;s economic projections, the median expectation is for three rate cuts in 2024.
Market expectations have moved ahead of the Fed&#8217;s stance, with investors pricing in more aggressive rate cuts than what the Fed forecasted in December.
The market is betting on a 50-50 chance the Fed will initiate rate cuts in March, and markets are pricing in a total of six rate cuts by December 2023.
Read now: <a href="https://www.benzinga.com/markets/equities/24/01/36699753/s-p-500-nasdaq-jointly-hit-new-all-time-highs-as-ai-driven-stocks-defy-gravity-whats-driving-mar">S&amp;P 500, Nasdaq Jointly Hit New All-Time Highs As AI-Driven Stocks Defy Gravity: What&#8217;s Driving Markets Friday?</a>
Staff writer Surbhi Jain contributed to this report. 
Photo: Shutterstock.

Macro Economic Events

Econ #s

Market-Moving Exclusives

ANET

FICO

INTU

PANW

S&P 500 Index Reaches All-Time Highs: AI, Rate Cut Hopes Cement The Milestone

2023 was a good year for the stock market, as the broad market S&amp;P 500 Index, and ETFs tracking it such as the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) ending the <a href="https://www.benzinga.com/topic/s-p-500-index">year with 25% gains</a>. 
Last year&#8217;s stock market returns were primarily driven by the Technology sector which gained over 55% on aggregate, and the Communication Services sector which rose about 50% on average. Investors are now wondering which sectors will shine in 2024.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/01/36472187/soft-landing-dont-bet-on-it-just-yet-feds-barkin-indicates-further-rate-hikes-possible">Soft Landing? Don&#8217;t Bet On It Just Yet: Fed&#8217;s Barkin Indicates Further Rate Hikes Possible</a>
According to Fidelity&#8217;s sector managers, the sectors that will lead and those that will lag may depend in large part on macroeconomic considerations. If the U.S. avoids a recession and achieves a &#8216;soft landing,&#8217; the most compelling potential <a href="https://www.fidelity.com/learning-center/trading-investing/outlook-sectors">opportunities</a> for this year lie in the following cyclical sectors:
<ul>
<li>Materials</li>
<li>Industrials</li>
<li>Consumer discretionary</li>
</ul>
<h2 class="wp-block-heading">Materials</h2>
The materials sector usually aligns with the economic cycle, riding the waves of overall economic growth. Although the sector showed positive yet slow returns last year due to worries about a possible recession, historically, it has excelled during early phases of economic upswings, making it primed for potential recovery. 
Fidelity sees long-term investment potential in a number of segments of the sector that have shown favorable supply-and-demand dynamics, including among copper miners and U.S. chemical manufacturers.
The Materials sector is broadly tracked by the Materials Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) and the Vanguard Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VAW#NYSE">VAW</a>). 
<h2 class="wp-block-heading">Industrials</h2>
The industrial sector saw positive, but lagging returns compared to the S&amp;P 500 in 2023 due to investor focus on specific mega-cap growth stocks. Fidelity sees long-term growth in various industrial segments being fueled by investments in onshoring, infrastructure, and sustainability. 
An improved U.S. economy could provide a short-term boost. Opportunities for 2024 include commercial aerospace, utilities infrastructure, residential construction, and shipping companies within this sector. 
Broadly, the Industrials sector is tracked by the SPDR Select Sector Fund &#8211; Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) and the Vanguard Industrials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIS#NYSE">VIS</a>).
<h2 class="wp-block-heading">Consumer Discretionary</h2>
The resilience of U.S. consumers throughout 2023 notably contributed to the consumer discretionary sector&#8217;s improved performance. 
Looking ahead to 2024, Fidelity believes this sector&#8217;s trajectory might still hinge on broader factors like the economy&#8217;s health and interest rate trends. Retailers with appealing valuations and defensive business strategies, potentially shielding them from economic downturns, are the ones that could stand out.
The Consumer Discretionary sector is tracked by the SPDR Select Sector Fund &#8211; Consumer Discretionary (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and the Vanguard Consumer Discretion ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>).
Now Read: <a href="https://www.benzinga.com/news/24/01/36528216/us-economy-set-for-soft-landing-as-economists-eye-fed-rate-cuts">US Economy Set For &#8216;Soft Landing&#8217; As Economists Eye Fed Rate Cuts</a>
Photo: Shutterstock

Select Sector SPDR-Consumer Discretionary

2024's Top Sectors For A Soft Landing: 3 Industries Leading The Way

The S&amp;P 500 Index is forecasted to deliver a double-digit increase in earnings per share (EPS) in 2024. This is good news for those invested in funds that <a href="https://www.benzinga.com/topic/s-p-500-index">closely track this index</a> such as the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) or the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). 
However, not all sectors may experience similar growth rates. This variance is what often prompts investors to seek opportunities that encompass multiple high-growth sectors in <a href="https://www.benzinga.com/topic/s-p-500-index">a single fund</a>.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/10073009/SPY-vs-QQQ-change-1-YR-Jan-10.jpeg" alt="" class="wp-image-178276" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/10073009/SPY-vs-QQQ-change-1-YR-Jan-10.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/10073009/SPY-vs-QQQ-change-1-YR-Jan-10-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/10073009/SPY-vs-QQQ-change-1-YR-Jan-10-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
<h2 class="wp-block-heading">Why QQQ Could Outpace SPY In EPS Growth?</h2>
For 2024, the sectors driving double-digit EPS growth, <a href="https://insight.factset.com/2024-outlook-9-views-on-what-to-watch-across-sp-500-earnings-ai-banks-and-more">according</a> to FactSet&#8217;s John Butters include:
<ul>
<li>Healthcare &#8211; broadly tracked by the SPDR Select Sector Fund &#8211; Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</li>
<li>Communication Services &#8211; tracked by the Communication Services Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</li>
<li>Information Technology &#8211; tracked by the SPDR Select Sector Fund &#8211; Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</li>
</ul>
Investors have the option to either focus their investments in these sector-specific ETFs for more comprehensive exposure within a particular sector, or they can choose a broad market ETF that leans towards allocations in these sectors.
Enter the Invesco QQQ Trust, Series 1 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Invesco NASDAQ 100 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NASDAQ">QQQM</a>). Both these ETFs track the Nasdaq 100 Index.
The QQQ and QQQM ETFs have a substantial allocation, around 69.95% to the healthcare, tech and communication services sector (last updated on Jan. 5, 2024):
<ul>
<li>Technology Services: 33.07%</li>
<li>Electronic Technology: 28.22%</li>
<li>Health Technology: 7.12%</li>
<li>Communications: 1.53%</li>
</ul>
On the other hand, the SPY ETF has a 47.86% allocation towards the these sectors:
<ul>
<li>Technology Services: 19.81%</li>
<li>Electronic Technology: 17.47%</li>
<li>Health Technology: 9.65%</li>
<li>Communications: 0.93%</li>
</ul>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36389824/s-p-500-stuck-in-4600-4800-limbo-for-2024-wells-fargo-pinpoints-3-favored-sectors-f">S&amp;P 500 Stuck In 4,600-4,800 Limbo For 2024? Wells Fargo Pinpoints 3 &#8216;Favored Sectors&#8217; For Next Year</a>
This indicates that the QQQ and QQQM ETFs may be better poised to benefit from S&amp;P 500 EPS growth compared to the S&amp;P 500 funds themselves. Historically, the Nasdaq-100 Index has shown stronger EPS growth than the S&amp;P 500.
The projected EPS growth is anticipated to accelerate notably throughout 2024, particularly in Q4 2024. QQQ and QQQM are heavily invested in the healthcare, technology, and communication services, which are expected to be key drivers of the S&amp;P 500&#8217;s EPS and revenue growth for the year.
Now Read: <a href="https://www.benzinga.com/general/politics/24/01/36473198/top-stocks-sectors-loved-by-congress-members-who-traded-in-2023-apple-nvidia-microsoft-ford-and-">Top Stocks, Sectors Loved By Congress Members Who Traded In 2023: Apple, NVIDIA, Microsoft, Ford And More Stocks To Watch In 2024</a>
Photo: Shutterstock

QQQM

S&P 500's Projected EPS Growth In 2024: Why QQQ, QQQM Might Lead The Way

The Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) has not been able to move the needle much in 2023. The stock rose just 1.5% as compared to the 25% stride that the broad U.S. stock market took. The S&amp;P 500-tracking SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), all ended <a href="https://www.benzinga.com/topic/s-p-500-index">2023 up about 25%</a>.
<h2 class="wp-block-heading">Executing On Bob Iger&#8217;s Turnaround Plan</h2>
However, as the company begins to implement CEO Bob Iger&#8216;s ambitious strategic turnaround plan, Wall Street observers are eager to see if Disney can shift the tide in its favor in 2024.
A significant indicator of its recovery is the reinstatement of dividends after a three-year hiatus. It serves as a testament to the management&#8217;s confidence in generating robust cash flows. 
While concerns linger about the reliance on legacy content for revenue, confidence is emerging. Disney&#8217;s strategic shifts towards bolstering the streaming business with renowned franchises like Marvel and Star Wars, is signalling a proactive approach to diversifying content.
Disney&#8217;s proactive measures are also extending beyond streaming. The company is investing towards enhancing its theme park experiences and acquiring full ownership of Hulu from Comcast.
Also Read: <a href="https://www.benzinga.com//node/36486147">Reliance, Disney Engage Legal Teams &amp; Begin Antitrust Due Diligence For Indian Media Merger: Report</a>
<h2 class="wp-block-heading">Golden Cross Signals Investor Optimism</h2>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05082409/DIS-stock-Golden-Cross-Jan-5.jpeg" alt="" class="wp-image-175074" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05082409/DIS-stock-Golden-Cross-Jan-5.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05082409/DIS-stock-Golden-Cross-Jan-5-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05082409/DIS-stock-Golden-Cross-Jan-5-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Disney&#8217;s stock just made a Golden Cross, which is a bullish indicator from a technical perspective. The 50-day SMA crossing over the 200-day SMA is often interpreted as a potential buy signal, suggesting that there might be an upward trend ahead.
Wall Street too appears bullish on the stock. On Dec. 22, 2023, analyst Barton Crockett of Rosenblatt Securities maintained a Buy on DIS stock with a price target of $112. The stock currently trades around $90, indicating upside potential.
<h2 class="wp-block-heading">Enticing Opportunity Or Risky Bet?</h2>
Investors eyeing Disney have an enticing opportunity, as the company navigates through challenges. Disney&#8217;s stock is currently trading at levels 23% below its 52-week-high. Driven by a clear vision and sound strategic repositioning, the company could be setting the stage for future growth and profitability.
Despite the hurdles in creativity and operational changes, there&#8217;s optimism about Disney&#8217;s path under Iger&#8217;s leadership. The company&#8217;s commitment to strategic acquisitions and a relentless focus on direct-to-consumer streaming services could potentially position Disney as a promising long-term investment prospect.
Now Read: <a href="https://www.benzinga.com/news/24/01/36493584/big-streaming-companies-have-realized-they-need-an-ad-tier-collaborate-with-groupm-to-streamline-ad" target="_blank" rel="noreferrer noopener">Big Streaming Companies Have Realized They Need An Ad Tier; Collaborate With GroupM to Streamline Ad Processes</a>
Photo: Shutterstock

Entertainment

Technicals

Can 2024 Be Disney's Turnaround Year? Chart Signals Bullish Trend As Bob Iger's Turnaround Plan Unfolds

The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is on the cusp of making financial history as it inches closer to becoming the first exchange-traded fund to reach the extraordinary milestone of half a trillion dollars in assets <a href="https://www.benzinga.com/markets/equities/23/12/36409413/s-p-500-nears-record-territory-even-as-momentum-slows-why-this-analyst-says-investors-may-need-t">under management (AUM).</a>
According to data from TradingView, the SPY ETF started the year with approximately $355 billion in AUM, and it is poised to conclude 2023 with a monumental milestone: crossing the $500 billion threshold. 
Launched and managed by State Street Global Advisors, Inc. (OTCPK: STTMF), the rapid growth of the largest ETF tracking the S&amp;P 500 Index has been driven by a combination of robust market performance and unprecedented inflows from investors.
Chart: SPY ETF&#8217;s AUM Skyrocketed In 2023
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-1024x495.png" alt="" class="wp-image-170613" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28111931/SPY_2023-12-28_16-19-17_171b3.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">S&amp;P 500 Approaches All-Time Highs, Drawing Investor Flows</h2>
After soaring by 26% year to date, the S&amp;P 500 Index is rapidly approaching its all-time highs, previously achieved in January 2022. 
While this impressive 26% increase in AUM is attributable to favorable market conditions, the remaining $47 billion, pushing the ETF toward the half-a-trillion-dollar mark, can be credited to substantial inflows from investors. 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-1024x495.png" alt="" class="wp-image-170624" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28112859/SPY_2023-12-28_16-28-33_44338.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
This influx of capital into the SPY ETF positions 2023 to potentially be its most remarkable year for inflows since its launch in 1993.
Behind this unprecedented surge in funds lies an intriguing twist. A staggering $37.5 billion has poured into the SPY ETF in December 2023 alone, elevating this month to the strongest one ever recorded in terms of inflows.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-1024x495.png" alt="" class="wp-image-170626" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/28113125/SPY_2023-12-28_16-31-07_b2b20.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Other ETFs Tracking S&amp;P 500 Have Also Seen Robust Inflows</h2>
It&#8217;s worth noting that the SPY ETF is not the only fund to benefit from this wave of investor interest. Other ETFs tracking the S&amp;P 500 have also experienced a surge in capital inflows.
<ul>
<li>The iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) stands out with a remarkable $36.5 billion in inflows year-to-date, marking its most substantial annual influx and propelling its AUM to nearly $400 billion.</li>
</ul>
<ul>
<li>The Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) has followed suit, recording a noteworthy $41.2 billion in inflows throughout 2023, marking its second-strongest year, surpassed only by the exceptional inflow seen in 2021.</li>
</ul>
<ul>
<li>The Invesco S&amp;P Equal-Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>) has joined the ranks of success, registering a record-breaking $11.9 billion in inflows for the year, establishing a new yearly record for the fund&#8217;s influx.</li>
</ul>
Read now: <a href="https://www.benzinga.com/23/12/36411620/nasdaq-100-eyes-best-year-since-dot-com-boom-ai-feds-pivot-behind-techs-stunning-revival">Nasdaq 100 Eyes Best Year Since Dot-Com Boom: AI, Fed&#8217;s Pivot Behind Tech&#8217;s Stunning Revival</a>
Photo: Shutterstock

SPY ETF On Track For $500B Milestone, Boosted By S&P 500's Peak Performance, Record Inflows In 2023

The traditional 60/40 investment portfolio has recorded a remarkable year of growth in 2023, sharply rebounding from a disappointing year in 2022. As of Dec. 27, the year-to-date performance of the 60/40 portfolio, benchmarked by the iShares Core Growth Allocation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AOR#NYSE">AOR</a>), <a href="https://www.benzinga.com/money/what-is-the-60-40-investment-strategy">stands at approximately 13%. </a>
This performance figure ranks as the third-best year for the strategy since its inception in 2008, trailing only behind the strong years of 2009 and 2019.
As we enter the new year, investors are pondering whether the favorable conditions that supported both equities and bonds in the second half of the year will endure.
<h2 class="wp-block-heading">60/40 Portfolio In 2022-2023: From Downturn to Upswing</h2>
The 60/40 portfolio is a time-tested investment strategy known for its simplicity and effectiveness. It involves allocating 60% of the portfolio to stocks and 40% to bonds, with the aim to strike a balance between risk and reward.
Stocks offer the potential for higher returns but come with higher risk, while bonds generally provide lower but more stable returns. By combining both asset classes, the portfolio naturally diversifies, potentially reducing the risk of significant losses since stocks and bonds often react differently to market conditions.
In 2022, the traditional 60/40 portfolio faced one of its most challenging years due to the Fed&#8217;s aggressive interest rate hikes, which created strong headwinds for both equities and fixed-income assets.
The gauge fell as much as 17%, wiping out a sizable portion of the pandemic rally. 
An initial $1,000 investment in a 60/40 portfolio at the beginning of 2022 dipped to less than $800 by November of that year, only to rebound to its current value of $928.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/27172235/newplot-5-1.jpeg" alt="" class="wp-image-170022" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/27172235/newplot-5-1.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/27172235/newplot-5-1-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/27172235/newplot-5-1-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
However, as inflation subsided in 2023, traders began to anticipate a normalization of elevated interest rates, betting on the Federal Reserve reducing borrowing costs in 2024. 
Money markets currently factor in six rate cuts by 25 basis points next year, a figure substantially higher than the indications given by Federal Reserve officials at the latest meeting, with the dot-plot showing a median preference for 75-basis-point cuts. 
Read also: <a href="https://www.benzinga.com/23/08/33967223/why-the-6040-portfolio-rule-is-not-for-everyone-the-statistics-might-surprise-you">Why The 60/40 Portfolio Rule Is NOT For Everyone – The Statistics Might Surprise You</a>
<h2 class="wp-block-heading">Will the 60/40 Portfolio Continue to Rally in 2024?</h2>
Looking ahead to 2024, it remains to be seen whether the numerous rate cuts currently priced in by the market will be delivered by the Federal Reserve. 
If these rate cuts materialize, bond yields are likely to continue heading lower, benefiting fixed-income assets and potentially rate-sensitive stocks such as those in the technology, real estate, and financial sectors.
On the other hand, if the decline in inflation stalls or fresh pressures emerge, the Federal Reserve may find it inappropriate to deliver as many rate cuts as currently expected by market participants. 
This could lead to disappointment in the markets and potentially weigh on both equities and bonds.
In summary, the 60/40 portfolio has made a strong comeback in 2023, but its performance in 2024 will depend on whether the anticipated rate cuts materialize and how economic factors evolve.
<h2 class="wp-block-heading">5 Strategies to Create a 60/40 Portfolio</h2>
Aside from the iShares Core Growth Allocation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AOR#NYSE">AOR</a>), there are several other ways for investors to construct a 60/40 portfolio. 
Here are seven different approaches an investor can use to replicate a 60/40 portfolio, with each pairing a stock ETF with a bond ETF:
<ol>
<li>S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and iShares 20+ Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NYSE">TLT</a>): Combining SPY, which tracks the S&amp;P 500 Index, with TLT, focusing on long-term U.S. Treasury bonds, offers a balanced portfolio with exposure to the U.S. stock market and the stability of government bonds.</li>
<li>Vanguard Total World Stock ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VT#NYSE">VT</a>) and iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>): VT provides global stock market exposure, while AGG tracks the U.S. Aggregate Bond Index, diversifying bond exposure.</li>
<li>iShares MSCI ACWI ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACWI#NYSE">ACWI</a>) and Vanguard Total International Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNDX#NYSE">BNDX</a>): ACWI offers global equity exposure, and BNDX focuses on non-U.S. bonds, providing international diversification.</li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and Vanguard Total Bond Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BND#NYSE">BND</a>): Similar to SPY, IVV tracks the S&amp;P 500, and BND provides diversified exposure to the U.S. bond market.</li>
<li>Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) and Vanguard Total World Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNDW#NYSE">BNDW</a>): VTI offers exposure to the entire U.S. stock market, and BNDW provides a globally diversified bond exposure.</li>
</ol>
Read now: <a href="https://www.benzinga.com/economics/macro-economic-events/23/12/36403950/treasury-etf-and-real-estate-sector-rise-together-as-30-year-yields-dip-below-4">Treasury ETF And Real Estate Sector Rise Together As 30-Year Yields Dip Below 4%</a>
Photo: Shutterstock

Bonds

Treasuries

ACWI

BNDW

BNDX

60/40 Portfolio Bounces Back From 2022 Slump: Is It The Right Investment Strategy For 2024?

The Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) Investment Institute has released its 2024 Outlook, detailing their projections for market levels at the end of 2024 and highlighting their preferred sectors <a href="http://benzinga.com/analyst-ratings/analyst-color/23/12/36290012/s-p-500-likely-to-test-the-5-000-level-jp-morgan-on-where-to-allocate-in-2024">for the upcoming year</a>.
<h2 class="wp-block-heading">S&amp;P 500 Index target 4,600-4,800 in 2024</h2>
Per the <a href="https://sites.wf.com/2024-outlook/">report</a>, Wells Fargo expects global earnings to be challenged in early 2024. They expect a rebound later in the year as the economy reaccelerates. Once investors begin to anticipate an economic and earnings recovery, they expect the S&amp;P 500 to gain into the end of the year. 
Wells Fargo has a 4.600-4,800 year-end 2024 target for the S&amp;P 500 Index. Apart from the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are two other popular ETFs that track the performance of the S&amp;P 500.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36290012/s-p-500-likely-to-test-the-5-000-level-jp-morgan-on-where-to-allocate-in-2024">S&amp;P 500 Likely To &#8216;Test The 5,000 Level&#8217;: JP Morgan On Where To Allocate In 2024</a>
&#8220;Valuations likely will increase in 2024 as markets anticipate an earnings recovery into 2025&#8221; said Darrell L. Cronk, president of Well Fargo Investment Institute and the CIO of Wealth &amp; Investment Institute.
<h2 class="wp-block-heading">Large-Caps Over Mid-Caps</h2>
At times when earnings per share (EPS) is decelerating and the economy is slowing, Wells Fargo favors quality and a more defensive posture within equities. Given their expectations with the earnings challenge in early 2024, Wells Fargo would prefer to allocate into U.S. large-caps over mid-caps and small-caps. 
They have a year-end 2024 target for the MSCI EAFE Index of 2,000-2,200. 
The MSCI EAFE Index follows the performance of large and mid-cap companies in 21 developed market countries globally, representing regions of Europe, Australasia, and the Far East. Notably, it excludes companies from Canada and the U.S. The iShares MSCI EAFE ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EFA#NYSE">EFA</a>) is a popular ETF that tracks the performance of the MSCI EAFE Index.
Analysts at the Well Fargo Investment Institute also prefer developed-market over emerging-market equities. Along with EFA ETF as mentioned above, the Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>) and the iShares Core MSCI EAFE ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEFA#NYSE">IEFA</a>) are 2 other popular developed-markets equity-tracking ETFs.
<h2 class="wp-block-heading">3 &#8216;Favored Sectors&#8217;</h2>
In terms of sector picks, Cronk calls out Health Care, Industrials, and Materials as Wells Fargo&#8217;s &#8220;favored sectors.&#8221; Some popular exchange-traded funds tracking these sectors respectively are:
<ul>
<li>Healthcare: The Health Care Select Sector&nbsp;SPDR&nbsp;ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) and the Vanguard Health Care&nbsp;ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>)</li>
<li>Industrials: The Industrial Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) and the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</li>
<li>Materials: The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) and the Materials Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</li>
</ul>
Consumer Discretionary and Real Estate count among the unfavorable sectors.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36301925/emerging-ai-trends-in-2024-blackrock-sees-shift-beyond-semiconductors-cloud-to-mode">Emerging AI Trends In 2024: BlackRock Sees Shift Beyond Semiconductors, Cloud To Model Infrastructure</a>
Photo: Shutterstock

IEFA

iShares Dow Jones US Aerospace & Defense Index Fund