JP Morgan: US equities have made a swift recovery

JP Morgan: US equities have made a swift recovery

United States
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The S&P 500 last week reached a new all-time high, taking just 148 days to recover from the 34% decline which took place from 19 February to 23 March. The market has recovered quickly compared with most prior bear markets, despite the US economy having just experienced a very deep recession by historical standards.

A reacceleration in Covid-19 infections in the US over the past two months has prevented a full recovery for the economy but has continued to benefit some of the ‘stay-at-home’ stocks, which have led the US market’s recovery. From here it may be more difficult for the same stocks to continue pulling equities higher. However, an improvement on the virus front, could lead to further gains for the many stocks which remain below their previous peak.

Number of days between bear market trough and new S&P 500 high

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Source: Standard & Poor's, J.P.Morgan Asset Management. Years are S&P 500 bear markets since 1968. Data as of 18 August 2020.