Stock markets continue the massive rally, with main indices such as S&P 500 (US500) and Dow Jones (DJI) making new record highs this week. On Friday we saw a slight retreat after some mixed profit results on Thursday from some major US companies, but they still made decent gains for the week and closed it at extraordinary levels.

S&P 500 Chart – Resuming Uptrend This Week Without Retreating

This week, all three major stock market indices posted solid gains, with the S&P 500 rising nearly 2.3%. The Dow Jones Industrial Average climbed just under 2%, marking its strongest week since December. Meanwhile, the Nasdaq Composite Index outperformed, surging by almost 2.9%.

My take is that the overall trend for the stock market will remain positive as main central banks prepare to start the interest rate-cutting cycle, which would divert funds from bonds to stocks and company shares, especially with the continuous breakout to new highs. This momentum positions the market for its fifth consecutive month of gains, indicating sustained investor optimism and confidence in the outlook for stocks.

Here’s a summary of the closing levels for major US indices:

• Dow Industrial Average: Closed at 39,475.91, down 305.49 points or -0.77%.
• S&P 500 Index: Closed at 5,234.17, down 7.34 points or -0.14%.
• NASDAQ Index: Closed at 16,428.81, up 26.97 points or 0.16%.
• Russell 2000 Index: Closed at 2,071.99, down 26.56 points or -1.27%.

Major Stock Indices Gains for the Week

• Dow Industrial Average rose by 1.602%.
• S&P 500 Index rose by 2.29%, marking its best week since December.
• NASDAQ Index rose by 2.85%, marking its best week since the week of January 8.
• Russell 2000 Index rose by 1.60%.

Year to Date Stock Gains

• Dow Industrial Average is up 4.74%.
• S&P 500 Index is up 9.74%.
• NASDAQ Index is up 9.44%.
• Russell 2000 Index is up 2.216%.

Dow Jones Industrial Average Chart – Erasing This Month’s Losses

The Dow Jones index has gained more than 7,000 points since October when the summer retreat ended

S&P 500 Live Chart