I will not begin to predict or even fully understand the recent ups and downs of the U.S stock market. However, given all the volatility recently, I thought it would be helpful to provide a high-level summary of the U.S. stock market performance each month. Below is a high-level summary for the month of April.
The Dow and S&P 500 posted their best month of performance since the 1980s. Optimism has been driven by hopes that many economics will gradually begin to reopen and there is some speculation on a drug trial for a coronavirus treatment. The S&P500 closed up 12.7% for the month of April. This was the best month since January 1987 when it gained 13.2%. The S&P 500 is still down 9.85% this year, on pace for its worst year since 2008 when it declined 38.5%. The Dow closed up 11.1% for the month of April. This was the best month since January 1987 when it gained 13.8%. The Dow is still down 14.7% this year, on pace for its worst year since 2008 when it declined 33.6%.
Many are predicting a long recovery, so I will be interested to see how the upcoming months will perform. Please feel free to ask any follow up questions in the comments section.