The crisis that became an opportunity: the S&P 500 surged more than 100% in four years

The S&P 500 index crossed the 7,800-point mark, four years after a low of 3,491 points on October 12, 2022. The crisis was driven by inflation and rising interest rates, but the artificial intelligence revolution ignited a rally that yielded a return of more than 100%. The article reviews the factors behind the rises and the risks ahead.

The S&P 500 index crossed the 7,800-point mark, four years after a low of 3,491 points on October 12, 2022. The article reviews the crisis that began in 2022, driven by high inflation following extensive cash distribution during the coronavirus period and the war between Russia and Ukraine, which raised oil prices to around $130 per barrel. Central banks raised interest rates to levels not seen since 2008, weighing on stock markets. After the index hit a low, a recovery began that strengthened with the launch of ChatGPT in November 2022 and the artificial intelligence revolution. Technology and chip stocks, including Nvidia, led the gains. The Nasdaq 100 index surged more than 200% in four years. Alongside this, the article notes risks ahead: high bond yields competing with stocks, rising financing costs for companies, and the concentration of gains in a limited number of technology companies. The article ends with the question of whether corporate profits and the artificial intelligence revolution will support the continuation of the rally.