The S&P 500 Just Hit a New Record. Does It Matter?

The S&P 500 hit a new all-time high on Tuesday amid news of U.S.-brokered peace talks aimed at ending the war between Russia and Ukraine.

The benchmark index flirted with the record throughout the day, ultimately rallying into the close and setting a new high of 6,129.58. That breaks the previous closing record of 6,118.71 set on Jan. 23 and marks the second all-time high since President Donald Trump assumed office in January.

In addition to a strong showing from chipmaker stocks, the announcement of peace talks served as a principal driver behind the rally, even though a delegation from Ukraine was not invited to the table, according to the BBC, and the country has said it would reject any agreements created without its consent.

Nonetheless, stocks spanning numerous sectors surged on the news, leaving the S&P 500 with a year-to-date gain of 4.45%. The biggest beneficiaries were energy (1.37%) and materials (1.27%), both of which have experienced supply chain disruption since Russia invaded Ukraine three years ago.

It was a good day for commodity traders, as well. Since Russia is the world's second-largest producer of natural gas behind the U.S., the news drove the price of natural gas 7.26% higher on the day. Similarly, TTF gas — the primary benchmark for European natural gas prices — gained 4.60%.

Agricultural commodities also rose on the prospect of a peace deal between Russia and Ukraine, which is known as the breadbasket of Europe. Together with Russia, the two countries produce 25% of the world's wheat. Additionally, Russia is one of the world's largest oat exporters. The news resulted in wheat gaining 1.08% on the day and oats gaining 1.93%.

What does the new all-time high mean for investors?

In short, not much. For the average investor, the advice remains the same: Stay invested across an array of assets and don't try to time the market. Sector uncertainty persists, and even the experts are approaching the 2025 investing landscape with caution. Between perceived stock overvaluations and without a clear understanding of how Trump's tariffs will impact consumer prices or interest rate policy, analysts have issued tempered outlooks for the market this year.

Bank of America, for example, has maintained its 6,666 price target for the S&P 500 this year, which is just 8.75% higher than yesterday's record closing price. Goldman Sachs' price target is even more conservative at 6,129.58, or just 6.04% higher than yesterday's close.

Retail investors with long-term horizons are best off remaining patient and not attempting time the market or guess which sector or sectors could outperform over the course of the year. It's an exercise even the experts frequently get wrong. Those looking to lock in gains now by cashing out of the market run the risk of leaving future gains on the table. To quote famed investor and mutual fund manger Peter Lynch, "Far more money has been lost by investors trying to anticipate corrections than lost in the corrections themselves."

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