The S&P 500 index closed at a record high on Tuesday, almost six months on from the coronavirus-induced sell-off that sent the markets spiraling.
The index previously hit a record high on February 19th, but rapidly plummeted 34% following the introduction of lockdown measures that shut down much of the economy. It has been making a steady recovery since, and yesterday the benchmark index rose 0.2% to close at 3389, surpassing the February record of 3386.
The tech-heavy Nasdaq also recorded a new high on Tuesday, gaining 81 points to 11,211. The Dow has similarly bounced back over the course of the past six months but remains about 6% below its February high.
Trillions of dollars in stimulus measures from the Federal Reserve and Congress have been the driving force behind the turnaround, with investors betting on a recovery boosted by the measures along with low interest rates. Corporate profits across most sectors have also proved resilient, which has boosted stock prices.
But with the virus still spreading around the world the road to recovery is still unpredictable. One turn for the worse in the situation and the recent gains could well be lost again.