SPX: S&P 500 Set to Close Best Two-Year Run Since 1998 Despite Lack of Holiday Cheer

Broad index saw 57 record closes this year and topped $50 trillion in market capitalization. Can it pull another standout performance next year?

• The S&P 500 index is on the cusp of making history even as Santa may have deserted the stock market. After a standout year with 57 record highs that have added to the benchmark’s $50 trillion market cap, the broad-based index is on track to log its best two-year performance since 1997 and 1998. Back then, the S&P 500 returned 31% and 27%, respectively. This year, the index is on track to log a 24% annual gain with another 24% slurped up in 2023.
• It’s been a highly positive year for stocks from every corner. Tech giants have unquestionably taken the lead with the well-known Magnificent Seven club powering through trillions of dollars of worth. It’s all happening on the back of robust economic growth, receding inflation and expectations of even more growth under Donald Trump’s America-first policies that threaten to slap tariffs and lower taxes.
• Record-setting runs were also there for gold bugs and crypto heads. The precious metal surged to levels near $2,800 per ounce (with 2025 forecasts still bullish) and Bitcoin prices defied gravity with a high-speed rise to $108,000 after the President-elect vowed to create a Bitcoin strategic reserve and support the growth of the crypto industry. Against this backdrop, interest rates helped to make all this possible but the outlook for 2025 has turned rather murky with just two planned cuts to borrowing costs.