Analysis: After another stunning U.S. stock market year, investors wonder how much gas is left – Reuters
People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021. REUTERS/Brendan McDermid/File Photo
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NEW YORK, Dec 23 (Reuters) – The U.S. stock market is set to deliver a three-peat of stellar annual returns, but chances of a similar performance in 2022 may be threatened by a more hawkish Federal Reserve, slowing earnings growth and a relentless pandemic.
With a little over a week left in the year, the S&P 500 (.SPX) is on track for an 87% gain since the end of 2018, its best three-year performance in more than two decades. The benchmark index is up 25% so far in 2021 after double-digit returns in the prior two years.
If history is any guide, next year’s gains may be less impressive, though not necessarily poor.
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