S&P 500 headed for fifth straight month of gains

The stock market's upward trajectory persists as the S&P 500 (^GSPC) inches closer to achieving its fifth consecutive month of gains. Yahoo Finance's Jared Blikre delves into the details, providing insights into the year-over-year growth and the sectors spearheading the market's bullish momentum.

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Editor's note: This article was written by Angel Smith

Video transcript

JOSH LIPTON: The S&P 500 on track for its fifth straight month of gains, which is a good sign for investors moving forward. Yahoo Finance's Jared Blikre joins us now for more. Jared.

JARED BLIKRE: Thank you. Have we come too far too fast? That's the question all investors have on their mind.

And history is saying, well, it doesn't matter that much. Strength begets strength. And that's important because we're talking about stocks.

We're not talking about commodities, which tend to feature mean reversion. Prices tend to trend in stocks and mainly to the upside. So that's what we're seeing here.

So what happens after an S&P 505 month winning streak, well, one month later, we do have some gains typically over the last 74 years go all the way back to 1970 or 1950. You feature. You have a gain of about 0.7%. That's any given month.

Now, after a five-month winning streak, that is 1%. So that's a little bit higher, over 12 months. One year later, we're looking at gains on average of 12 and 1/2 percent with over a 90% win rate. That is significantly higher than the 9.5% chance that you have in a one-year period over these last 74 years.

And then also, and I'm writing about this in the Morning Brief tomorrow going into a little bit more detail about some of the sector action that we've seen in this five-month rally. But here we are. Here are the S&P 500 sectors.

You'll notice that XLK, that's tech is number one. Almost 30%. But closely on its heels is a financial sector. That's 29%. That includes JP Morgan, as well as Berkshire Hathaway, by the way.

Communication services, that's a megacap sector with Alphabet and Meta. That's right up there to 28%. But here's industrials, another sleeper.

Let me just show you a five-year chart because we started breaking to the upside after a significant consolidation only last year. And when we think about industrials, we've had twice as many record closing highs in the industrial sector versus tech. So the big point is we probably will see more strength. And it's just a question of which sectors we're going to see it in. Not necessarily tech.