Stock indexes have been on a winning streak in recent weeks, as the global economy slowly recovers from the effects of the pandemic. Investors have been pouring money into growth stocks in particular, confident that the U.S. economy is slowly beginning to turn a corner.
The Dow Jones Industrial Average and the S&P 500 have kept up their winning streaks recently, with both reaching new highs. The tech-heavy Nasdaq tends to outperform the other major indexes in times of economic growth, and it has done so again this time. The Nasdaq is up 12% this year, while the Dow and S&P 500 have seen gains of around 7%.
Growth stocks in particular have been on a tear lately, with the Invesco QQQ fund, which tracks the Nasdaq, more than doubling since March. This is good news for investors, as it indicates that there’s still plenty of optimism about the future of the U.S. economy.
The tech sector has been leading the way, as companies like Apple, Microsoft, and Amazon have reported strong quarterly earnings. But other sectors, such as healthcare and consumer staples, have also seen their share prices rise as investors bet on a robust economic recovery.
Retail investors have been especially active lately, with the Robinhood app seeing an increase in activity in recent weeks. The rise of stock market “meme stocks” like GameStop and AMC have kept retail investors interested in the markets, as they search for the next big winner.
It remains to be seen if the current uptrend in the stock market will continue. But with investors continuing to show confidence in the markets, it’s certainly possible that the current winning streak could continue for some time.