After witnessing a volatile first half of the year due to the pandemic-led concerns, the S&P 500 has recorded its best August in the past 36 years, soaring about 7%. Of the 11 S&P 500 sectors, nine witnessed growth.
Major technology companies’ resilience to the coronavirus crisis heavily supported the market’s momentum. Rising work-from-home and online shopping trends along with increasing digital payments helped major tech stocks gain on the surging demand for their products and services.
Credit for this rally can also be given to the several COVID-19 vaccine-related developments during the month, which aided Healthcare stocks. Further, the reopening of the economy benefitted the coronavirus outbreak-hit sectors like airlines, retailers, hotels and restaurants, and cruise line operators to some extent.
Notably, a slew of positive economic data helped instill optimism in investors. Per a report by the Commerce Department, consumer spending in the United States grew 1.9% in