US stock market: How the market went above Covid-low in 3 graphs before the big crash

US stock market investors have been riding a roller coaster with three major indices — the S&P 500, the Dow 30 and the Nasdaq 100 — all in bear market territory. From the March 2020 lows seen after the outbreak of the Covid-19 pandemic, when the market fell by 30%, major indices rose to higher levels in November 2021 and then the major stock market crash of 2022.

Ahead of the Fed’s September rate hike meeting, the Nasdaq 100 touched a November 2021 high of 16,764.86, reversing around 11,861.38, from a March 20 low of 6994.29.

The Nasdaq 100 is a technology-intensive index that does not contain a single company from the financial and banking sectors. Some of the top US global companies that are part of the Nasdaq 100 are Microsoft, Apple, Amazon, Alphabet (Google), Meta (Facebook), Intel, Cisco Systems, Comcast, PepsiCo, Tesla, Nvidia, Adobe and PayPal.

The S&P 500 index saw its nadir on March 23, 2020, when it closed at 2237.4. By December 2021, it reached its peak crossing 4766. Thereafter a major decline started and reached the level of 3800 by September 2022.

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The S&P 500 remains the top-most single indicator of large-cap US stocks representing companies in 11 sectors, including information technology, health care and communications services, which account for nearly 50 percent of the index.

When it comes to the formidable list of stocks in the S&P 500, in addition to some of the top blue technology stocks listed on Nasdaq, Johnson & Johnson, Berkshire Hathaway, Visa Inc. and JPMorgan Chase are a part of the index.

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Dow 30 closed at 19173.98 on March 16, 2020, amid the covid-19 stock market devastation. And, from there the Dow rose to an all-time high of over 36000 on 30 November 2021 and fell nearly 6000 points to 30700 by September 2022.

The Dow Jones Industrial Average (DJI) or Dow 30 differs from other indices because it represents companies that are based only in the US. The index includes the top 30 blue-chip companies and is a barometer of the US economy, its businesses, and consumption trends in the country.

Source: Yahoo Finance website (for chart)

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