The S&P 500 index known as the best gauge of large-cap US equities has proved to be invulnerable to the pandemic. American titans which sustain global economic expansion are still staying afloat despite the coronavirus crisis.
The S&P 500 index ended the first quarter down 35%, but then it recouped its losses and even hit its first record high since February 2020. Its growth was mainly contributed by the smart policy of the Fed. The S&P 500 is being supported by low interest rates and investors' optimism about a recovery in corporate earnings in 2021-2022. This time, the second wave of the coronavirus pandemic will hardly force the authorities to introduce strict quarantine measures. This means that the economy is unlikely to be crippled and the index will not come under strong pressure. However, the geopolitical situation continues to pose a risk to the S&P 500, especially growing tensions between the United States and China as well as a prolonged economic recovery.
The S&P 500 index is a stock market index that measures the stock performance of the 500 largest US companies and captures 80% of the total market capitalization. It is one of the most frequently used stock indices which is regarded by the investment community as a benchmark index for the US stock market.
