The "thrilling" August in the US stock market comes to an end, with the S&P 500 index experiencing the strongest upward volatility since June last year

Zhitong
2024.08.20 22:31
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This month, the U.S. stock market has experienced significant volatility, with the S&P 500 index rebounding strongly, marking the most significant upward movement since June last year. Independent research firm CappThesis pointed out that the S&P 500 index recorded five single-day gains of over 1% in August, outperforming expectations. Recent economic data has alleviated investors' concerns about a weak labor market, boosting market sentiment. Despite experiencing setbacks, the index rose by 1.5% in August and has risen by 17.5% year-to-date in 2024

According to the Zhitong Finance and Economics APP, the stock market has experienced significant volatility this month, with the S&P 500 index rebounding strongly from its lows in early August, marking the most significant uptrend since last year. According to data from the independent research firm CappThesis, the S&P 500 index has had at least five single-day increases of at least 1% in August, the most in a single month since June 2023.

Frank Cappelleri, the founder of CappThesis, pointed out in a report on Tuesday that the recent series of "significant fluctuations" in the S&P 500 index stemmed from its rebound from the sell-off in early August, with 8 out of the 10 trading days since August 6 seeing gains. While large-cap growth stocks led the rally in this uptrend, they were not the only winners, as other sectors also saw gains.

The significant rebound of the S&P 500 index has turned the US stock market into positive growth in August, thanks to the latest economic data easing investors' concerns about the softness in the labor market earlier this month. For example, the July retail sales report released by the US Department of Commerce last week showed data stronger than Wall Street expectations, boosting market sentiment.

Cappelleri expressed satisfaction with the five significant increases in the S&P 500 index in August, considering it a response to the nearly 10% decline prior. However, he also mentioned that "returning to a calmer trading environment will pave the way for more bullish patterns."

According to Dow Jones market data, the S&P 500 index rose 1% on Monday, marking the longest consecutive rise since November 8, 2022. Despite a 1% decline in the S&P 500 index on Tuesday, the index still rose by 1.5% in August according to FactSet data.

Despite the twists and turns in August, the US stock market overall remains in a strong bull market.

As of Tuesday afternoon, the S&P 500 index has risen by 17.5% year-to-date in 2024, compared to a 24.2% surge for the full year last year. According to Dow Jones market data, the S&P 500 index closed on Monday only 1% below the historical high closing price of 5667.2 points set on July 16

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