Moves made in stock trading depend a lot on how investors react to news. Some of the best online brokers out there motivate stock traders with advanced tools and competitive offers to get them started. But what really encourages investors is market growth.
On Monday, November 16, 2020 the Dow Jones struck a record – the fastest bear market recovery the index has ever recorded in 30 years! On average, it takes 1,483 trading days for the Dow to hit a fresh all-time high from bear market territory. Monday saw the first all-time high for the index since February, when it started feeling the effects of the COVID-19 lockdown and the resultant economic recession.
The Dow hit a closing high of 29,551.41 on Monday, edging closer to the 30,000 milestone. It took just 193 trading days after a fall in the region of 20% from its recent peak. A faster growth was recorded on April 17, 1991 when the Dow managed to recover from a bear market in just 191 trading days.
The following chart compares the current bear market recovery of Dow Jones with its 1990-1991 recovery:
Is the Market on Its Way Up?
For bullish investors this could be a confirmation that the stock market is on an upward journey, particularly when considering that the other major indexes, the S&P 500 and the Nasdaq Composite have already staged more impressive upswings. March 23 was when the bear market was at its severest point. Since then, the Nasdaq Composite gained more than 73%, while the S&P 500 gained almost 62%. The Dow registered the least impressive climb of 60.5%.
The primary contributor to the Nasdaq’s surge has been Apple ($AAPL). From 29,000, Apple shares contribute over twice that of other components in the Dow, almost 1,300 points.
Tesla Soon to Be Part of S&P 500
Meanwhile, Tesla ($TSLA) stock registered a massive jump after news emerged that it is joining the S&P 500. The S&P Global manages some major US stock indexes, and it announced that Tesla would join the S&P 500 before commencement of trading on Monday, December 21. Investors have been anticipating the move for some time now. The news sent the stock up by over 14% in Monday’s after-hours trading. As of Monday’s market close, Tesla has gained 388% in 2020. That has raised its market cap to almost $387 billion.
This week, gave a break from the COVID-19 concerns, with indications that the economy is on its way back this kind of news may be encouraging when considering trading stocks online.
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