US stocks hit record high after rebound from March low
Adam Samson and Harry Dempsey in London
Wall Street’s benchmark stock index has struck an all-time intraday high after rallying more than 50 per cent from the bear-market low hit during the darkest days of the coronavirus crisis.
The S&P 500 index rose 0.3 per cent in early trading on Tuesday to a high of 3395, eclipsing the previous record that was reached in February, before the pandemic slammed Wall Street and global financial markets.
The barometer has soared 54 per cent since the low that was struck on March 23, with the gains being led by America’s biggest technology companies including Apple, Amazon, Microsoft and Google parent Alphabet.
The rise has prompted concerns among some investors that these stocks are vulnerable to a crash reminiscent of the early 2000s dotcom bust.
“Fortunately, [valuations are] not at similar nosebleed levels, which prevents the market meltdown scenario of 2000-02,” said Tobias Levkovich, chief US equity strategist at Citi. “But we still worry that investors have crowded into one area that might be ripe for some pitfalls.”
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