S&P 500 Turns Positive On The Year, Flashes 'Quite Rare And Rather Bullish' Signal

Wall Street extended its rally on Tuesday as easing trade tensions between the U.S. and China and softer inflation data boosted investor confidence. In fact, the S&P 500 reclaimed positive territory for 2025 and closed 0.7% higher on the day.

What To Know: The market is flashing another bullish signal that could indicate even more gains ahead, according to Ryan Detrick, chief market strategist for the Carson Group.

Detrick observed that on Tuesday, more than 60% of the components in the S&P 500 are hitting new 20-day highs and pointed to a historically bullish year following this rare occurrence.

"This is quite rare and rather bullish. Strong performance across the board and higher a year later 18 out of 18 times," Detrick wrote in a post on X.

Detrick posted a chart from Carson Investment Research, which shows the last time more than 60% of S&P 500 components reached a new 20-day high was on Dec. 1, 2023. Twelve months later, the S&P 500 was 31.7% higher.

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The same chart indicates that this signal has flashed 18 times since 1982, and each time the S&P 500 was higher 12 months later with an average gain of 18.6%.

What Drove The Action: First Solar Inc FSLR soared almost 23% and was the biggest gainer in the S&P 500 on Tuesday, on favorable U.S. policy developments for domestic solar manufacturers.

NVIDIA Corp. NVDA was a standout performer Tuesday, surging nearly 6% after announcing it would supply 18,000 advanced AI chips to Saudi Arabia. The move pushed Nvidia’s market capitalization above $3 trillion and made it a major force behind the S&P 500’s advance.

Shares of Palantir Technologies, Inc. PLTR rose more than 8% to an all-time high of $130.60, buoyed by optimism around its AI software and increased defense sector opportunities.

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