The S&P 500, a vital US stock index, has demonstrated growth despite the impact of the coronavirus pandemic. The market measure has recently closed at 3,389.78, exceeding its February record by three points.
Recovery
It appears that other US indexes have also experienced rebounds. The Dow Jones Industrial Average is within 5% of its February record, while Nasdaq surpassed its previous high in June.
Since March 23, US shares have been on the rise after economic support measures were announced by America’s central bank. The recovery is partly due to the Federal Reserve’s actions, according to analysts. There is also an increase in demand from investors who trust in the economy and see this time as an opportunity to make even more money on the stock market.
These US gains have surpassed many other global markets. London’s FTSE 100 is still 20% lower than January, and France’s CAC 40 is down by 19%. Japan has benefited from controlling the virus without widespread lockdowns, as the Nikkei 225 index has climbed by 4%.
Tech Leading the Way
Tech companies have been a driving force behind this US recovery, with firms such as Microsoft, Apple, and Amazon emerging as winners. Areas like cloud computing and machine learning have also benefited. S&P 500’s tech sector has seen shares climb by approximately 25% this year, although other sectors remain negative. Financials are down by 20%, while the energy sector is down by around 37%.
Senior index analyst at S&P Dow Jones Indices, Howard Silverbatt, stated:
“There’s a significant dispersion between those that have performed well and those that have performed poorly.