What’s in store: By all measures, 2017 was a stellar year for the stock market. As we enter a new year, experts are cautiously optimistic that stocks will continue their hot streak in 2018.
Stocks soared last year on huge corporate profits and economic growth. The Dow Jones industrial average shot up by 25%, the S&P 500 grew by 20% and the tech-heavy Nasdaq index outshined them both with a 29% gain.
The rally was also fueled by the promise of the sweeping tax cuts by the Republican-led Congress and President Trump. Over time, those cuts will save corporate America billions.
n 2018, that means corporate earnings will continue to grow. Higher profits should boost the S&P 500 in the new year, said John Lynch, Chief Investment Strategist for LPL Financial.
A strong economy also helped lift stocks this year. Analysts expect the economy to continue growing, albeit at a slower pace than last year.