NEW YORK (AP) — The U.S. stock market has never been higher, even as the list of challenges chipping away at it keeps growing.
The S&P 500 climbed 0.6% Tuesday to a record after topping its prior all-time high set in August. Despite worries about everything from war to high inflation to pressure from the bond market, the index at the heart of many 401(k) accounts has soared 23% since hitting a bottom in late March.
The Dow Jones Industrial Average added 253 points, or 0.5%, while the Nasdaq composite tacked 0.4% onto its own all-time high set the day before. The record-high stock prices are helping investors feel better about their finances, or at least less bad, when Americans are generally feeling discouraged about keeping up with the fast-rising cost of living.
Many of the fears that sent the U.S. stock market to its bottom in March have indeed come true. Oil prices are high because of the war with Iran, which has made inflation worse. Yields have cranked higher in the bond market, which threatens to slow the economy by making it more expensive for everyone to borrow money. And Americans broadly say they’re feeling more pessimistic about the economy and where it’s heading.
But one vital source of support has remained resolute for the U.S. stock market throughout: the relentless ability for companies to make more money.