The major domestic equity indexes hit a series of record highs in 2017, riding on strong economic growth, solid corporate earnings and low interest rates. As a result, the S&P 500 index gained 19.5 percent this year, the blue-chip Dow Jones Industrial Average was up 25.2 percent and Nasdaq 28.2 percent, as each of the major Wall Street indexes scored the best yearly performance since 2013.
The market has also shown surprising strength despite tensions in North Korea and political upheavals in Washington. Nonetheless, Wall Street ended its best year since 2013 on a down note, with losses in technology and financial stocks keeping equities in negative territory throughout the session.
The major domestic equity indexes saw their gains in 2017 resulting from a combination of strong economic growth, solid corporate earnings, low interest rates and hopes for a tax cut from U.S. President Donald Trump’s administration.
The market remained resilient in the face of tensions in North Korea and political turmoil in Washington. The S&P 500 only saw four sessions all year with a decline of more than one percent while the CBOE Volatility index topped out at 15.96 on a closing basis, well below its long-term average of 20.
Among the S&P 500 sectors, the technology index has been the best performer, up 37 percent and led by a gain of 87.6 percent in Micron Technology. Telecom services index down 5.7 percent and the energy index down 3.7 percent, were the only two sectors to end the year in the red.
The rally is widely expected to extend into 2018, aided by increases resulting from the tax reform recently passed by Congress and signed into law by the President.
For the week, the Dow was down 0.13 percent, the S&P 500 chalked up a loss of 0.36 percent and the Nasdaq fell 0.81 percent.
Apple ended the trading day down 1.08 percent after issuing a rare apology for slowing older iPhones with flagging batteries.
Goldman Sachs fell 0.68 percent after saying its fourth-quarter profit would take a $5 billion hit related to the new tax law.
Amazon was down 1.4 percent after Trump targeted the online retailer in a call for the country’s postal service to raise prices of shipments in order to recoup costs.
Approximately 4.94 billion shares changed hands on the major domestic equity exchanges, as compared to the 6.4 billion share average over the past 20 trading days.