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The analysis of the S&P 500 Index and U.S. Money Supply M2 from 1970 to May 2024 reveals a general upward trend for both indices, with the Money Supply M2 showing stable growth and the S&P 500 Index exhibiting higher volatility. The correlation between the two suggests that while increases in the money supply can contribute to stock market growth, other factors play a significant role in driving market fluctuations. This highlights the complexity of financial markets and the multitude of influences on stock prices beyond just monetary supply.
