Microsoft stock, the S&P 500, and other indexes
Earlier in this series, we looked at the S&P 500 rally and Microsoft’s (MSFT) contribution to it. September 2017 marked the first time Microsoft stock surged to its all-time high and crossed the $600 billion market cap (capitalization). The last time MSFT touched this landmark market cap was in the first week of January 2000, just before the dot-com bubble exploded.
Microsoft stock is currently trading at $92 and has crossed the $710 billion landmark. It’s currently the third-most valuable company after Apple (AAPL) and Google (GOOG) in the S&P 500 (VOO) index with a market cap of $712 billion.
Microsoft stock has been on an upward trajectory since 2009 but has picked up the pace since mid-2016. In the last three months, Microsoft stock has rallied 18.3%. In comparison, the S&P 500 index, the Nasdaq 100 (NDX), and the DJIA (Dow Jones Industrial Average) rose 11%, 14%, and 13%, respectively.
S&P touched one of its record highs
The above graph from Goldman Sachs (GS) shows the forecast from late 2014 when it predicted that the S&P 500 index would cross the 2,400 level by 2018. Currently, in the first month of 2018, the S&P 500 index has already crossed the 2,800 level.
On January 25, 2018, the S&P 500 index rose to 2839.25, which marked its 13th record high. The positive outlook for companies has extended the stock market rally that began early last year. It’s now rising in the wake of the US tax reform legislation passed in December 2017.