About 16 weeks after the pandemic threw the US economy into a recession, a bull market looks likely to have begun. Since hitting a low on March 23rd, 2020, the NASDAQ has risen 44.7%. It has crossed its February 2020 highs in the process and has reached its first record close in about four months.
When an index makes a new high, it is widely believed to be a bull market indicator. The bull market is considered to have begun at the index’s low, which in this case would be March 23rd, 2020. The NASDAQ Composite comprises 2,500 stocks that trade on the Nasdaq Stock Exchange.
The S&P 500, on the other hand, has gone back into positive territory for the year 2020 after spending much of the past few months in the red. The index had plunged by more than 30% in March and is currently about 4.5% from its record high.
The Dow Jones Industrial Average has also hit a 3-month high. US stocks have been gaining momentum as sectors like Utilities, Oil & Gas, and Financials have led the rally. Rising stocks on the NYSE outnumbered declining ones by 2389 to 521. 41 stocks remained unchanged.
There is plenty of optimism around the news regarding the re-opening of economies around the world. The recent US jobs report, which gave out surprising data about a significant fall in unemployment, has supported views that the worst may be over as far as the pandemic-led carnage is concerned.
Nasdaq futures for June were trading at 9895.50 while S&P 500 futures for June were trading at 3225.62.