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Rising of tech shares lead S&P 500 to recover from losses.


S&P 500 had a history of lost shares before the starting of the coronavirus pandemic. Most of the stocks affected by an economic crisis because of the results of the coronavirus pandemic. Such as the increasing unemployment rate, destruction of small businesses, etc. But now, a recovery is showing due to the shares of major technology companies. Because during this pandemic situation, technology plays an important role. So stocks are recovering their previous losses with the help of the shares of technology companies. But previously, tech shares fell nearly 0.8%.

Fate of the market and S&P 500

The S&P 500 is up nearly 0.3% from previous losses. Anyhow, investors confuse about the reopening of the economy too soon during this crisis. South Korea, Singapore, and Japan warn about a group of cases take place due to the upside momentum of the market.
As Paul Tudor Jones, the founder of Tudor Investment Crop reveals to the CNBC; the condition that is in the market currently depends on coronavirus. There is a shift in focus from liquidity issues to solvency issues. If we don’t find a proper solution for it, the market will have a difficult time in his view.

Current condition of S&P 500 others

On the 23rd of March, the S&P 500 has hit an intraday low. From that, more than 33% rallied by the S&P 500. Tech stocks cause for reaching such a peak. Microsoft, Netflix, Apple, etc. are some examples of those stocks. From the end of March, those stocks have increased by more than 20%.
Some stocks predicted to have benefits due to the reopening of the economy. Earlier those stocks were also rising up. For example, MGM Resorts has increased by more than 70%, Disney has increased 27.3% in previous time. But now, stocks are down. Disney has lost 0.9%, MGM has lost 4.8% and United Airlines lost 4.1%, etc.
Likewise, Facebook raised 0.5% and Amazon, Apple, Netflix, etc. have raised more than 1%. Microsoft and Intel raised respectively 1% and 1.6%.
Apple is going to reopen the stores in the US. And they are going to follow health tips to avoid from COVID-19. Such as, temperature checking, limiting the number of customers entering the stores once, etc. they had a loss of 0.7%.

Opinions on S&P 500.

According to data from Johns Hopkins University, there are more than 4.1 million coronavirus cases found around the world. From that 1-3 million of victims are from the US. In such a situation, the S&P 500 is up 3.5%. This month is going to have the record of the largest loss of jobs.
According to the views of Adam Crisafulli who is the founder of Vital Knowledge; the world is in a sense of reopening the economy. Anyhow he says, the S&P 500 is still overvalued due to the current situation. But there is a hope of proper restarting of increased economic activities.
According to a chief market strategist in S&P 500; the performance of energy, financials, and industrials are down more than 24% during the last three months because of the pandemic situation and lockdown.  Further he says, over the last three months S&P 500 has occupied a top-level as revealed by rough calculations.
Because of the ongoing coronavirus pandemic, the technology sector plays an important role. Therefore, tech shares of the market started to go up. Earlier there was a fall of nearly 0.8% of tech shares. But their raising has gradually started with the reopening of the market. The S&P 500 is the best example that shows a raise standing from earlier losses. So S&P 500 has rallied more than 33%. Not only the S&P 500, other shares such as Microsoft, Netflix, Apple, Facebook, etc. are also started to increase. But most of the strategists doubt about the reopening of the economy. Due to the ongoing crisis; the performance of energy, financials, and industrials are down nearly more than 24% during this pandemic time period.
Rising of tech shares lead S&P 500 to recover from losses. Rising of tech shares lead S&P 500 to recover from losses. Reviewed by ViralBlossom on June 26, 2020 Rating: 5

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