Stock Market Closes August on High Note Officially Indicating New Bull…

With the Dow measuring the stock performance of 30 large companies listed on stock exchanges in the United States, its rise is an indication that the big market cap companies are headed for a bull run.

As the market continues to recover from the ongoing coronavirus pandemic, the stock market is indicating a better future. This is based on an analysis of the top stock market index including the Dow Jones Industrial Average (INDEXDJX: .DJI), the S&P 500 index (INDEXSP: .INX), and the Nasdaq Composite (INDEXNASDAQ: .IXIC) that rose 6.62%, 6.24%, and 8% respectively in August.

Despite the Dow dropping around 200 points on Monday to trade around 28,430, media outlet CNBC noted that the index wrapped up its best August performances since the 1980s.

With the Dow measuring the stock performance of 30 large companies listed on stock exchanges in the United States, its rise is an indication that the big market cap companies are headed for a bull run.

Notably, the Dow components that majors in telecommunications, Pharmaceutical and the technology at large have thrived during the coronavirus crisis. This is attributed to the high speculation on their stock market and the fact that they are delivering services that are on high demand.

However, other components including Boeing Co (NYSE: BA), and the Walt Disney Company (NYSE: DIS) have seen their business operations severely impacted by the coronavirus pandemic.

Other Stock Market Achievements in August

On the part of the Nasdaq Composite Index, which is basically the market capitalization-weighted index of over 2,500 common equities that are listed on the Nasdaq stock exchange, it saw tremendous changes and growth in the month of August.

According to Marketwatch metrics, the Nasdaq Composite Index rose 31.24% YTD through Monday, and managed to add 23.28% in the past three months.

With its major components indicating further rise, the index is poised to continue with the rally in the upcoming months.

Some of the notable changes include that of two big stock splits which took effect Monday. One was from Apple Inc (NASDAQ: AAPL) shares that gained 3.4% after the 4-for-1 split took effect. The other was from Tesla Inc (NASDAQ: TSLA) shares that added 12.6% following its 5-for-1 split.

On the part of S&P 500, CNBC noted that it notched its fifth consecutive monthly advance. Besides, since 1950, there have only been 26 instances in which the broader market index has risen for five straight months, according to data from Suntrust/Trust Advisory. Whereby in 96% of those occasions, the S&P 500 has spotted gains a year after the streak.

It is also worth noting that the traditional stock market continued gains have been experienced in other sectors including the cryptocurrency market where most altcoins besides Bitcoin have officially indicated a new wave of the bull run.

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