The S&P 500 Just Did Something Unseen in 35 Years. It Could Signal a Big Move in Stocks Over the Next 12 Months.
The rally in May could be just the start of a bigger jump in stock prices.
The stock market has been on a roller coaster ride since the start of the year.
After a rocky January, when AI stocks got dinged by DeepSeek's news of a cheaper reasoning model, the S&P 500 (SNPINDEX: ^GSPC) returned to an all-time high in February. Then, President Trump's tariff discussions put many investors on edge as he announced plans for taxes on imports from Mexico, Canada, and China. That went into overdrive at the start of April, when Trump enacted significantly higher-than-expected tariffs on practically every country in the world. The announcement produced one of the worst two-day market crashes in history.
But after walking back the implementation of most of the tariffs (for now) and investors acclimating to this uncertain environment, the stock market has mostly recovered. In fact, the S&P 500 index just did something in May for the first time since 1990, and historically, it signals a big move in stocks over the next 12 months.
