The S&P 500 closed at a record high on Thursday at 4,704.54 (its third close above 4,700) and fell just short of another record on Friday when it dropped 6.58 points or 0.14% to 4,697.96. The Nasdaq closed at a record high of 16,057, its first close above 16,000 while the Dow Industrials is the laggard at 35,601, almost 1,000 points below its record.
The markets are climbing the proverbial “wall of worry” with concerns about the Fed’s tapering program, eventually raising interest rates and who will President Biden name as Fed chair, the Delta variant still impacting the economy, fears that inflation will continue at an elevated level longer than anticipated, how long will supply chain issues persist and major additional spending by the Federal government. For the week the S&P 500 and Nasdaq rose 0.3% and 1.2%, respectively while the Dow fell 1.4%.
Stocks have performed better under Biden than Trump where it matters
By President Trump’s favorite measure of success President Biden’s post-election gains in the S&P 500 Index have soundly beaten Trump’s equivalent at just over their one-year election anniversary. While the Dow Industrials captures the most attention, the S&P 500 Index covers a wider range of the economy and is the most used Index for passive index investing.
Charlie Bilello, Founder and CEO of Compound Capital Advisors, has created a chart that shows how many times the S&P 500 has hit record highs in any year since 1929. For 2021 the Index has eclipsed the record 66 times, which is the second highest number to 1995’s 77 times. Biden’s record number also eclipses Trump’s best year in 2017 when the Index broke its all-time high 62 times.
There have been four times the S&P 500 Index has achieved 60 or more record highs in a year.
- 1964: 65 record highs
- 1995: 77 record highs
Starting in 2013 when the S&P 500 recovered from its Great Recession fall the least number of records has been 10 in 2015.
- 2013: 45 record highs
- 2014: 53
- 2015: 10
- 2016: 18
- 2017: 62 (fourth best)
- 2018: 19
- 2019: 36
- 2020: 33
- 2021: 66 as of November 19
Biden’s S&P 500’s performance has trounced Trump’s
Trump saw a gain of 20.5% from his election day and 13.9% from his inauguration to mid-November 2017 in the S&P 500.
- From Tuesday, November 8, close: Up 439 or 20.5%
- From January 19 (the day before the Inauguration): Up 315 or 13.9%
Using the Index’s returns from when Biden’s election was called the weekend after the election to Friday Biden’s market returns are substantially above Trump’s by 13.3% and 9.7% from his inauguration.
- From Tuesday, November 3, close: Up 1,329 or 39.4%
- From Friday, November 6, close: Up 1,189 or 33.9%
- From January 19 (the day before the Inauguration): Up 899 or 23.7%