US Stock Index Reaches New High
The S&P 500, a key US stock index has seen growth despite the coronavirus crash. The market measure has closed at 3,389.78, which is higher than its February record by three points.
It seems there have been rebounds for other US indexes. The Dow Jones Industrial Average is within 5% of its February record, while Nasdaq surpassed its previous high in June.
Since 23rd March US shares have been rising after economic support measures were announced by America’s central bank.
The recovery is partly due to Federal Reserve moves according to analysts. There is also 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 outstripped many other global markets. London’s FTSE 100 is still 20% than January, and France’s CAC 40 is down by 19%. Japan has benefitted from controlling the virus without vast lockdowns, as the Nikkei 225 index has climbed up by 4%.
Tech Leading Charge
Tech companies have boosted this US rebound. Companies such as Microsoft, Apple and Amazon have come out as winners.
Areas like cloud computing and machine learning have also benefitted. S&Ps 500’s tech sector has seen shares climb by around 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 has stated:
“There’s big dispersion between those that have done well and those that have done poorly. We’ve come a long way and there’s a lot of optimism in there and that is concerning.
If we don’t get what we expect – disappointment is not a good item in the market.”
It seems that there will be an uncertain journey ahead for investors. US political questions, such as how the presidential election will play out, and if Washington will approve more economic stimulus, will have a serious effect on the markets.