Monday, 29 March 2021 05:16

S&P 500 at maximum rate

The US stock index S&P 500 has jumped by 74.9% within 12 months from March 23, 2020, which is the highest annual growth since 1936, Financial Times writes, citing strategists at Deutsche Bank (DE:DBKGn).

At the beginning of last year the indicator began to decline sharply against the background of the coronavirus outbreak and reached the lowest level on March 23.

The US Federal Reserve System’s (FRS) decision not to limit the quantitative easing program and buy back as many assets as necessary gave momentum for its recovery. For the first time in history, the regulator began to buy back corporate bonds.

Since then, the S&P 500 has soared on the back of budget measures to support the economy, including US President Joe Biden's $1.9 trillion package, as well as promises by Treasury Secretary Janet Yellen to take large-scale measures to promote economic recovery.

The growth of the S&P 500 is also driven by expectations of improved financial performance of companies in the current and next years.

Read 711 times Last modified on Tuesday, 30 March 2021 05:20