The S&P 500 index notched its first-ever close above 2000 on Tuesday, a new milestone in the stock market’s march higher.
Tuesday’s finish was the 30th record close this year for the index, which has gained 8.2% in 2014 through the end of trade on Tuesday. The Dow industrials hit a fresh intraday record of 17153.80 on Tuesday but failed to hold a record through the close.
Throughout the year, stock investors have shrugged off worries about rising interest rates, military action throughout the Middle East and Ukraine and even occasional concerns about the lackluster economic recovery. On Tuesday, investors were focused on M&A activity and a report showing an increase in optimism among U.S. consumers, helping drive the S&P up 2.10 points to 2000.02.
It took 16 years for the S&P to gain 1000 points since breaking through 1000 for the first time in 1998.
Should this have happened?
Does it make sense for the S&P 500 to have scaled 2000 so soon after a global crisis – a crisis that by some measures hasn’t even been fully resolved?
And against this tenuous global economic backdrop? Or the darkening geopolitical situation? Is this justified?
Do we deserve it?
As Clint Eastwood explained in The Unforgiven, “Deserve’s got nothing to do with it.”