Stocks Just Hit Rare Golden Cross For 1st Time Since 2023 — Here's What It Means For Investors
The S&P 500 and Nasdaq 100 indices have formed a 'golden cross' on their charts, indicating the possibility of a 'long-term bull market,' according to the experts.
What Happened: According to an iShares MSCI World ETF (NYSE:URTH) chart, tracking the MSCI World Index shared by Barchart, global stocks have formed a 'Golden Cross' for the first time since January 2023.
This comes as the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and the Nasdaq 100 index, respectively, also formed 'golden crosses' on their charts.
Last time, when URTH formed a golden cross, where the 50-day moving average surpasses the 200-day moving average, the returns rose to 43% over the next two years.Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved —
Historical data dating back to 1975 suggest that the formation of this positive technical indicator on the charts has led the S&P 500 index 88% of the time higher over the next year.
The average return after a 'golden cross' was 12.29% in the last 50 years, as per the data shared by Subu Trade.A portfolio manager at Revere Asset Management, Connor Bates, shared QQQ's chart and highlighted how the securities have trended upwards after the formation of this cross in the last five years/Meanwhile, Ed Yardeni of Yardeni Research said in his QuickTakes note that 'those 'golden crosses' tend to be bullish breakout patterns, indicating the possibility of a long-term bull market.'Why It Matters: According to Benzinga Pro, the SPY made a golden cross last week, and its current 50-day moving average of $587.15 was above its 200-day moving average of $582.68.
Similarly, QQQ made a golden cross on June 23, and its current 50-day moving average of $515.59 was above the 200-day moving average of $503.23.
After the truncated trading week on Thursday, the SPY was up 0.79% at $625.34, while the QQQ advanced 0.98% to $556.22, according to Benzinga Pro data.
On Monday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading lower.
Read Next:
Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — And You Can Invest At Just $6.37/Share
If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
Photo courtesy: Shutterstock
This article Stocks Just Hit Rare Golden Cross For 1st Time Since 2023 — Here's What It Means For Investors originally appeared on Benzinga.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Home Depot reaffirms annual forecasts despite weak quarter
STORY: Home Depot reaffirmed its annual sales and profit forecasts on Tuesday, sending its shares up as much as 5% in morning trading. The steady outlook came despite disappointing second-quarter results for the country's top home improvement chain, as customers rein in spending on large-scale renovations and focus on do-it-yourself projects. Home Depot kicked off a closely watched earnings week for big-box retailers, including Walmart and Target, that will show how consumers are dealing with rising costs and sour economic sentiment. Despite shifting tariff rates, Home Depot had said in May it would keep its prices unchanged. But on Tuesday, the retailer - which sources more than 50% of its products domestically - said its tariff-related costs were higher than expected, resulting in modest price hikes on some of its imported products. Still, the company maintained its annual sales growth target of about 2.8%. Home Depot's results helped lift shares of rival Lowe's, which reports its quarterly results on Wednesday. Related Videos Intel stock rises, report of new Nvidia chip for China, Air Canada strike How an ADR works: What US investors need to know Blink Charging stock tumbles: CEO talks earnings miss & what's next Palantir extends losses, SoftBank & Intel, a top Oracle exec exits Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18 minutes ago
- Yahoo
Southwest unveils Getaways with flights, hotels and 2 free bags
Southwest Airlines is wagering it can beat a Jet2 holiday. The company announced Tuesday, Aug. 19 Getaways by Southwest, a package vacation booking platform that lets customers shop for all-inclusive itineraries along with their flights. "Getaways by Southwest expands what customers love about Southwest—flexibility, an award-winning Rapid Rewards loyalty program, and great perks—to the vacation experience," Phil Gouel, Vice President Product Development at Southwest Airlines, said in a statement. "This end-to-end vacation package, coupled with our legendary customer service, is perfect for customers seeking a convenient, valuable, and curated vacation experience." According to Southwest, packages that include flights, hotel accommodations, car rentals and ground transportation are available to popular destinations like Las Vegas, Orlando, Hawaii and various Caribbean locations. Customers who book their whole trip on the Getaways platform will also be able to check up to two bags for free – a throwback to Southwest's former bag policy. Getaways also offer travelers some flexibility if their plans change. Customers who book through the Getaways platform can cancel their trip and receive credit toward a future vacation, valid for up to 18 months. They can also make changes to existing itineraries without incurring a change fee up to 72 hours before their first flight. Customers can see the deals and terms and conditions for each package on Southwest's website. Getaways is the latest update from Southwest that makes it similar to other airlines. The company has been overhauling its business strategy in recent months, doing away with open seating and free checked bags for all in a bid to compete more evenly with other carriers. Southwest is also adding extra legroom seats across its fleet and overhauling its fares and boarding process. Zach Wichter is a travel reporter and writes the Cruising Altitude column for USA TODAY. He is based in New York and you can reach him at zwichter@ This article originally appeared on USA TODAY: Southwest bets on new vacation booking platform to woo travelers
Yahoo
18 minutes ago
- Yahoo
Cisco (CSCO) Price Target Lowered to $64 Despite Strong AI Narrative
Cisco Systems, Inc. (NASDAQ:CSCO) is one of the On August 14, Piper Sandler analyst James Fish lowered the price target on the stock to $64.00 (from $70.00) while maintaining a Neutral rating. Fish noted how Cisco's quarterly results were roughly in-line, and that FY26 guide came in below what bulls were hoping for. This is raising questions about 'peak growth x peak multiple' being already seen, with second half of 2026 guide implying less than 5%. Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels However, the firm believes that the narrative for Cisco remains unscathed owing to artificial intelligence. 'However, the narrative here remains unscathed, as Cisco will see the ~$1B AI orders in F2H25 flow into FY26 revenue, further AI-infrastructure spend (including across customer-bases), campus refresh, datacenter refresh & modernization, growing Enterprise & Neoclouds traction, and Splunk cross-sell and cost-synergies. FY26 guide looks about how we anticipated and realistic, particularly for an incoming CFO. The debate from here will be sustainability, and while we remain optimistic around the narrative across multiple fronts, even an upside numbers scenario is already embedded in the stock at these levels. Reit. Neutral, PT to $70.' While we acknowledge the potential of CSCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
