The S&P 500 reached an all-time high of 2,130.82 on May 21, 2015. As it approaches the anniversary of the peak, it may well surpass it.
The S&P 500 currently sits at 2,015.93. Its trajectory has been largely higher since the recent trough of February. For the index to move toward a new record, the prices of some of the largest components will need to make most of the momentum.
Surprisingly, tech may not be the primary engine of the rise. Only three of the largest components are tech companies: Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT) and Facebook Inc. (NASDAQ: FB). Facebook and Microsoft have become favorites of investors. Apple has not, so the leading component of the index may be the worst enemy of a sharp improvement.
Another drag has been the shares of Exxon Mobil Corp. (NYSE: XOM), the world’s largest oil company, which have been hammered by the recent crude price crater. However, as oil appears to be recovering, the fate of Exxon may improve. The two conglomerates on the list, General Electric Co. (NYSE: GE) and Berkshire Hathaway Inc. (NYSE: BRK-B), have been in favor among investors. Johnson & Johnson (NYSE: JNJ) and Procter & Gamble Co. (NYSE: PG) have not had explosive share prices, nor have their shares collapsed. AT&T Inc. (NYSE: T) shares have not been on fire, but they get a boost because of its high dividend and strength of its fiber to the home and cellular businesses. The final of the top 10 stocks in the index is Wells Fargo & Co. (NYSE: WFC). Due to problems with loan portfolios, including ones that include energy paper, banks have been out of favor.
Short term, Exxon and Apple will need to draw investors. If they can, the S&P 500 may pass its former record.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
