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Thu, December 19, 2024
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Could This 1 Thing That's Happened Only 3 Times in the Past 67 Years Halt the S&P 500's Gains in 2025? Here's What History Says.


Published on 2024-12-19 05:41:09 - The Motley Fool
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  • This year has been a fantastic one for stocks, from the moment the S&P 500 confirmed a bull market back in January to today, with the three major benchmarks heading for double-digit annual gains. The S&P 500 has climbed 27% this year, while the Nasdaq and the Dow Jones Industrial Average have advanced 34% and 15%, respectively.

The article from The Motley Fool discusses the potential impact of the Federal Reserve's interest rate decisions on the S&P 500's performance in 2025. It highlights that the Federal Reserve has been raising interest rates to combat inflation, which has historically led to market volatility and potential declines in stock prices. The article suggests that if the Federal Reserve continues its hawkish stance and raises rates further, it could lead to a significant slowdown in economic growth, potentially halting the S&P 500's gains. Conversely, if the Fed signals a pause or a dovish turn, it might provide a boost to the market. The piece also mentions the importance of watching economic indicators like employment data, inflation rates, and Fed communications for clues on future monetary policy, which could either support or undermine the ongoing bull market.

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2024/12/19/could-this-1-thing-halt-s-and-p-gains-2025/?referring_guid=1a77486c-dc97-4076-b66d-5c594283d20b ]
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