In exciting news for fans of Wall Street: The S&P 500 Index (SP: .INX) entered a new bull market overnight. Thatâs good news for the S&P/ASX 200 Index (ASX: XJO) today. It’s up 0.29% at the time of writing.
But is the Aussie index also gearing up to roar 20% above its recent lows? Letâs take a look.
Wall Street rejoice! The S&P 500 has entered a new bull market
Yesterday was a big one for United States markets, as the S&P 500 officially entered a new bull market. That means it’s covered 20% of ground since its most recent low.
The S&P 500 includes the 500 largest companies listed in New York â around 80% of the United Statesâ available public market capitalisation.
Thus, its heavily weighted towards the nationâs tech giants, such as Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), and Amazon.com Inc (NASDAQ: AMZN). Such stocks have regained plenty of lost ground in recent weeks amid a boom in investor sentiment surrounding AI.
The index continued its recent rally overnight, soaring 0.62% to close at 4,293.93 points. Thatâs 20% higher than its October low of 3,577.03 points.
The S&P 500 is the last of Wall Streetâs three majors to reach the milestone.
The Dow Jones Industrial Average Index (DJX: .DJI) entered a bull market in November 2022, with the Nasdaq Composite Index (NASDAQ: .IXIC) following suit last month.
Will the ASX 200 be next?
Sadly for Aussie investors, the ASX 200 still appears a ways away from a bull market.
The index closed at a two-year low of 6,433.4 points in September. That means it would have to reach 7,720 points to enter a new bull market. It closed yesterdayâs session at 7,099.7 points.
But, while the next bull market might not be on the ASX 200âs doorstep, rest assured itâs on the horizon. That’s if history is anything to go by.
I have no doubt that the ASX 200 will follow in the S&P 500 footsteps in the coming months, years, or decades, with patient investors winning out in the end.
The post The S&P 500 is officially in bull market territory. Is the ASX 200 next? appeared first on The Motley Fool Australia.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Foolâs board of directors. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, and Microsoft. The Motley Fool Australia has recommended Amazon.com and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.