The US stock market hit a new high

Driven by the central bank's stimulus measures, the unbalanced but strong stock market rebound in the United States has recovered all the losses caused by the novel coronavirus epidemic.

This is a slight increase, but a significant milestone.


The US stock market closed slightly higher on Tuesday, setting a record. So far, this strong (although uneven) rebound driven by the central bank's stimulus measures has recovered all the market losses caused by the novel coronavirus epidemic.


This day is a microcosm of this rebound: there are more falling stocks than rising ones, but some large tech companies will push S&P500index(S&amp 500)Pushed up to a record high. Amazon(Amazon)The stock price rose by more than4%; Google(Google)Our parent companyAlphabetrise2.7%。


Plus apples(Apple)Microsoft(Microsoft)andFacebook, from3Since the peak of selling in the second half of the month, S&P500The one with the highest index5Only the constituent stocks combined contributed a quarter of the stock market's rise.


this5The weight of each stock in the index now exceeds one-fifth, making it one of the top five constituent stocks in the index1980The highest weight held since the beginning of the year.


Cyclical stocks have joined the latest wave of gains in this round, albeit intermittently. Investors are increasingly willing to bet on the continued recovery of business activities, and they expect that the COVID-19 epidemic in the United States may be peaking.


However, the vast majority of S&P500Component stocks are still below2month19The level of the Japanese market at its last peak; Among them, the current stock price is higher than that day, accounting for less than40%On average, the decline of these constituent stocks exceeds7%。


New York Fund CompanyAlgerMarket Strategy Director Brad•Newman (Brad Neuman)"Wall Street is not a mirror of the main street. The most affected economic sectors, such as shopping centers, hotels, and airlines, have much lower weight in the stock market," he said


Newman added that the new market record reflects a record breaking gap between winners and losers, benefiting large technology groups that dominate the digital economy in areas such as cloud computing and online shopping.


Large technology companies benefit from the home stay policy that has left countless people around the world trapped at home. S&P500The largest component of the index, Apple, has risen nearly this year60%The current market value is close to2Trillion dollars. Last month, the company announced that as of6The record breaking revenue for that quarter of the month was due to people purchasing Apple devices for working from home.


Wilmington Trust Company(Wilmington Trust)Meghan, Head of Investment Strategy•Shu(Meghan Shue)"In this pandemic, growth oriented technology stocks have performed exceptionally well. We believe the magnitude may be a bit too large and the speed may be a bit too fast - the market is currently incorporating a lot of optimism into its prices," he said


Trillions of dollars in government spending and the Federal Reserve(Fed)The support has driven the stock market up. The Federal Reserve3The month lowered interest rates to near zero levels and announced a massive bond purchase plan to support the financial market and help businesses borrow money to resist the pandemic.


The subsequent increase in government bond prices will10The yield of the two-year US treasury bond bond pushed to a record closing low earlier this month.


The decline in government bond yields has stimulated the rise of the stock market in several ways, not only by injecting hope for rapid recovery from the COVID-19 epidemic into the economy. The decline in returns also encourages more investors to seek higher returns in riskier assets and makes stocks appear less expensive compared to bonds.


Even after rebounding to record levels, the gap between the yield of US stocks (the ratio of returns to stock prices) and bond yields has not reached its highest level in history.


Tuesday, S&P500The current yield of the index is3.8%Compared to10High yield of one-year treasury bond bonds3.1Percentage points.


Pacific Life Fund Advisor(Pacific Life Fund Advisors)Asset Allocation Manager Max•Goeckerman (Max Gokhman)"If we compare the stock price to profit or sales, we will find that it looks a bit inflated. But if we look at it from a relative perspective, especially compared to fixed income (securities), this price doesn't look bad, and may even look very attractive."