The S&P 500 has shown remarkable performance over the past three years, with a decline of 19.4% in 2022, followed by gains of 24.3% in 2023 and 23.3% in 2024. This upward trend has been highlighted as one of the strongest since 1928, according to Goldman Sachs. The 'Magnificent 7' stocks, which include major tech companies, have been a significant driver of this performance, with their 12-month forward earnings per share (EPS) reaching approximately $8.10, compared to $4.10 for the equal-weighted S&P 500, indicating a 52% disparity. Earnings for the Magnificent 7 have surged by 124% over the last two years, with projections for a 33% growth in 2024, while the broader S&P 500 is expected to see only a 3% increase. The S&P 500 closed at 5,918.25 on the fifth trading day of 2025, surpassing the critical level of 5,881.63, which historically predicts positive annual gains 82% of the time, with a median annual gain of 13%. Currently, the index is 2.8% below its all-time high from 2024, while the Russell 2000 is 8.3% below its peak.