The Big Comeback: S&P 500 Closes At Record High 6 Months After Coronavirus Plunge

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People walk near the New York Stock Exchange in June. The S&P 500 index has fully recovered from its plunge earlier this year when the pandemic began shutting down much of the economy.

Angela Weiss/AFP via Getty Images

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Angela Weiss/AFP via Getty Images

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As the market fell deeper into bear territory, the Dow Jones Industrial Average posted four-digit losses on multiple trading days — including a shocking drop of nearly 3,000 points, or 13%, in a single day. Stock prices fell so fast that automatic circuit breakers kicked in several times, forcing temporary trading halts.

But after plummeting 34% from its Feb. 19 peak, the S&P 500 has staged a steady recovery — gaining more than 50% from its low on March 23. On Tuesday, the S&P 500 finished at 3,389.78 — an all-time closing high.

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The Dow has made a similar rebound — rising about 9,600 points, or 53%, from its low — but remains about 1,800 points below its highs.

With countless businesses closed and tens of millions out of work, the economy contracted at a record 32.9% pace in the second quarter. After soaring to 14.7% in April, unemployment fell to a still-high 10.2% last month.

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But investors have been betting on an economic recovery boosted by record-low interest rates and other stimulus measures from the Federal Reserve and Congress.

And yet renewed spikes in coronavirus cases around the country, followed by a new round of lockdowns, have cast doubts on when the recovery will take hold.

• COVID-19
• stocks
• coronavirus
• Stock market
• S&P 500