S&P 500 ends at another record high as tumultuous 2020 ends | Nation
The dire economic situation weighed heavily on almost any company that relied on direct consumer spending or a physical presence, including airlines, restaurants, hotels and mall-based retailers.
Volatility spiked. The Dow had several day-to-day swings of about 2,000 points. And the S&P 500 rose or fell by at least 1% on twice as many days in 2020 than it did, on average, since 1950.
The VIX, which measures how much volatility investors expect from the S&P 500, climbed to a record high 82.69 in March and remained above its historical average for much of the year.
The wave of selling accelerated as the economic fallout from the pandemic widened, leaving many long-term investors looking on as their gains after a blockbuster 2019 for stocks evaporated. Five months later, the market recouped all of its losses.
“It was probably very hard to imagine getting those back in such a short period fo time,” said Shawn Cruz, senior market strategist at TD Ameritrade.
Wall Street’s recovery was due in large part to unprecedented actions from the Federal Reserve and Congress to support the economy. Investors also flocked to big technology companies such as Apple and Amazon and smaller companies like Grubhub and Etsy that were poised to take advantage of the shift to working and shopping from home.
