By Francisco Rodriguez-Castro on August 31, 2020
SAN JUAN – The US stock market ended the month with a bang, with much higher increases than the previous weeks and on route to an August for the record books.
If the rally holds, it will be the best August since 1984. With the Nasdaq Composite seeing a year to date return of 30.35% and the S&P 500 Index growing close to 55% since the end of the shortest bear market and offering a year to date return of 8.6%.
We can safely say that the bear market is dead with the economic recovery taking a firm hold, as several vital benchmarks have improved significantly, which we review below.
Suppose you feel like me, as if someone robbed you of your summer. In that case, you are not alone, and the COVID-19 lockdown altered the normal flow of the year in many areas that include education, family vacations, workflow, buying habits, and many other changes product of the social distancing measures caused by the pandemic. However, as the summer ends, the markets are in a healthier position than in March. It is a direct result of an easing of the exogenous economic shock that the economy suffered as the COVID-19 spread globally.
Results for the month closing Aug. 31:
- The Dow Jones Industrial Average closed at 28,430.05, up 2,001.31 points, or 7.57%.
- The Standard & Poor’s 500 closed at 3,500.31, up 229.12 points, or 7.00%.
- The Nasdaq Composite Index closed at 11,775.16, up 1,030.19, or 9.59%.
- The Birling Puerto Rico Stock Index closed at 1,574.70, up 32.4 points, or 2.1%.
- The US Treasury 10-year note closed at 0.74%, up 28.57%.
- The US Treasury 2-year note closed at 0.14%, up 27.27%.