Another strong day for US stocks, driven by mostly by technology, as many tech companies made all-time highs. By the end of the day, we have:
- S&P 500: 3,179.72 (+1.59%)
- Nasdaq: 10,433.65 (+2.21%)
- Russel: 1,442.88 (+0.77%)
In terms of sectors, consumer discretionary, communications and financials have been leading the gains, with real estate and utilities lagging behind. So far S&P 500 has been up for 5 days straight and gained +5.6% over this time.
Technology-heavy Nasdaq has closed at all-time high, confidently surpassing its pre-Covid peak of 9,817.18 by 6.2%. Nasdaq 100 index is also standing at all-time highs and has delivered a remarkable 21.4% return in 2020 – a year that is so far not particularly known for great economic growth and prosperity that usually accompanies significant market gains.
In terms single stocks, as expected Apple, Facebook, Google and Microsoft went up, all gaining over 2%. Amazon, in particular, rallied by +5.77% and passed $3,000 per share for the first time.
Tesla +13% lol
— Hipster (@Hipster_Trader) July 6, 2020
It’s remarkable that some stocks seem to be better off post-Coronavirus than prior to it. As if the uncertainty, unemployment and the economic slowdown actually helped the share price. Overall, it probably suggests that the Fed actions fueling the asset bubble seem to overweigh any Coronavirus impact (or any other fundamental factors for that matter). With interest rates at zero and Fed stretching its capabilities to the max, US stocks seem to be the preferred choice for asset allocation. For now…