One year ago, the U.S. stock market bottomed out, with the S&P 500 hitting its trough after a 34% plunge in just 23 trading days.
At the time, few could have imagined the recovery that the market has seen, including 34 record-highs for the index since last year’s low. Despite a global pandemic that has killed nearly 550,000 people in the U.S., eliminated millions of jobs and restricted economic activity, stock indexes have risen to new highs.
Behind the stunning rally stand a series of factors, including, initially, the Federal Reserve’s swift emergency measures to support financial markets and the economy. Those helped push U.S. stocks off their 2020 low and kicked off a stretch of sustained leadership by growth and technology stocks. As investors piled back into the stock market last year, they scooped up shares of companies that stood to benefit from the pandemic. Unlike sectors such as energy and retail, which suddenly faced uncertainty, technology stocks were lauded by some analysts as holding large growth potential.
Recently, however, that rally has stalled, sending the tech-heavy Nasdaq Composite briefly into a correction—a 10% decline from a recent high. Since the index’s recent record on Feb. 12, growth and tech stocks have largely struggled. In contrast, other sectors have surged, including energy and financials.
The following charts chronicle how the market has changed since Feb. 12.
Tech Stocks Led the Market Rally. Now They’re Falling Behind. Source link Tech Stocks Led the Market Rally. Now They’re Falling Behind.