The S&P 500 has achieved yet another record high, despite the recent inflation data showing higher-than-expected numbers. This strong trend is expected to continue due to bets on a Fed rate cut, strong earnings, and the growth of artificial intelligence (AI). To take advantage of this favorable moment, investors are advised to consider investing in ETFs that track the S&P 500 Index, such as SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV), Vanguard S&P 500 ETF (VOO), and SPDR Portfolio S&P 500 ETF (SPLG).
The 17th all-time high of 2024 was reached after the Consumer Price Index rose by 3.2% in February, slightly higher than the expected 3.1% increase. Despite the mild increase in inflation, market participants believe that it will not deter the Fed from cutting rates in June. The latest job numbers also support the expectation of rate cuts, with the economy adding 275,000 jobs in February.
Federal Reserve Chair Jerome Powell recently stated that the central bank is close to being confident that inflation is declining towards the 2% target, making rate cuts a possibility. Earnings for the S&P 500 Index are projected to increase by 11.3% in 2024, with revenue growth of 4.9%. Additionally, the enthusiasm for AI is expected to continue, with experts predicting more innovations in this field.
ETF options for investors include SPDR S&P 500 ETF Trust (SPY), which holds 503 stocks with a focus on the information technology sector. iShares Core S&P 500 ETF (IVV) and Vanguard S&P 500 ETF (VOO) also track the S&P 500 Index, offering different benefits for investors. SPDR Portfolio S&P 500 ETF (SPLG) is another option that follows the S&P 500 Index and has a low expense ratio.
Overall, the S&P 500 is showing strong performance, with various ETF options available for investors looking to capitalize on this trend.