Will the S&P 500 Index Continue Its Rally in November?
The S&P 500 Index is making new highs
The S&P 500 Index (SPY) had a strong performance in October 2017. As of October 27, 2017, the index had risen nearly 2.4% on a month-to-date basis. October was a very important month for investors, as the index made record highs.
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S&P 500 Index in October
On Friday, October 27, 2017, the S&P 500 Index (IVV) touched a record high of 2,582.98. On a year-to-date basis, the index returned nearly 15.2% as of October 27, 2017. Other US (IWM) (QQQ) indexes such as the Dow Jones Industrial Average (DIA) and the Nasdaq Composite Index (COMP-INDEX) rose nearly 18.6% and 24.5%, respectively, on a year-to-date basis. The stronger improvements in these indexes are mainly due to the improvement in various fundamental and political factors.
The improvements in business confidence and consumer confidence are signaling a strong environment for US businesses. On the other hand, tax reform is playing a major role in market movement. At the end of September 2017, Republican lawmakers released their tax reform framework in which they propose to reduce the corporate tax rate from 35% to 20%. It’s also expected that this step will bring more jobs to the United States (VFINX).
If the tax reform bill passes in Congress by the end of the year, we could see more upside in the major indexes. Billionaire investor Dan Loeb recently said that he is bullish on the US stock market and expects these reforms could take the S&P 500 Index to new highs.
In the next part of this series, we’ll analyze what the volatility index is indicating for the market.