Yesterday, the S&P 500 reached a new all-time closing high of 7,736.52, marking its first close above the 7,700 threshold. This week’s rally has been fueled by strong corporate earnings, a sharp rebound in artificial intelligence stocks, and easing oil prices. The chart below, from Charlie Biello of Creative Planning, shows the S&P 500’s historical high-water marks in 100-point increments, dating back to its first move above 1,000 in February 1998.
Record highs can often act as a catalyst as some sort of psychological breakout. Crossing milestones can shift investor psychology from risk aversion to fear of missing out. Consistent all-time highs typically coincide with strong economic cycles, robust corporate cash flows, or revolutionary technological expansions. That environment is prevalent in many ways today.
Notably on the chart is the record drought from Marcy 2000 through May 2013, when it took the S&P 500 4,790 days to break thru the 1,600-point barrier. That period was the double whammy of the Dot Com bubble bursting and a global financial crisis. The next longest drought was 757 days December 2021 through January 2024.
All in all, the S&P has been in a prolonged bullish cycle since eclipsing 4,900 in January 2024. Given all the major catalysts currently – the AI investment boom, corporate earnings resilience, and macroeconomic tailwinds – we see now reason we won’t see some more 100-point level breakthroughs soon. Will we crest 8,000 in 2026? Something to watch between now and the end of the year.
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