Tech stocks power S&P 500’s rally; on track for best August in 34 years

The S&P 500, which rallied for the seventh straight session on Friday, is on track for its best August in 34 years, partly powered by a rally in technology stocks, prospects of super-low interest rates for a prolonged period, and hopes of a medical solution to the COVID-19 pandemic.


Tech stocks power S&P 500's rally; on track for best August in 34 yearsThe tech sector’s 0.6% rise provided the biggest boost to the benchmark index… “Technology has kind of become the recession play. With everybody piling in into it, the momentum is certainly on technology’s side,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

The Federal Reserve on Thursday unveiled a plan to support inflation and restore the U.S. economy from its biggest downturn since the Great Depression.

Data on Friday showed U.S. consumer spending increased more than expected in July… Progress in the race to develop treatments and vaccines for COVID-19 have also added to the cheer. Johnson & Johnson’s Janssen unit said it would expand testing for its experimental coronavirus vaccine to Spain, the Netherlands and Germany next week.

Meanwhile, the U.S. election campaign entered its final stretch with U.S. President Donald Trump’s Republican nomination for a second term. Analysts expect market volatility to increase again ahead of voting in November.

Tesla Inc and Apple Inc rose 1.7% and 0.3% ahead of their stock splits that take effect on Monday.

MacDailyNews Take: Back in March, who would have thought the S&P 500 would on track for its best August in 34 years?


  1. Ha. Remember in 2016 when the news media was warning that the stock market would crash if Trump was elected? Now in August 2020 his poll numbers keep climbing and the stock market is rising to reflect that.

    1. And many D-hacks here think the market’s gain during Trump’s term was because of Obama. The same is true to the R-hacks that think Trump is responsible for the current markets gain. Just partisan BS on both sides. Are they totally non-effectual? No, but are either the sole/primary architects of the gains? No.

      The stock market has been driven by QE, bond-buying, MME, or simple Fed infusions of $$. It translates to asset inflation and because most of the infusions land in the hands of people/orgs/business that ALREADY have assets, stock are the most visible manifestations of the rise. All one has to do is look at the line of upward graph lines starting with Obama around 2010, until March 20 crash. The stock market graph lines point UPWARD. Coincidentally, the Fed has had their hand in the market the entire time via infusions, rate cuts and efforts to stimulate/moderate. Again, all these efforts help those ALREADY holding assets and the “help” has resulted in gains, or asset inflation…and look how successful they’ve been.

      We are in a Debt Bubble zone that we’ve never been in before. Cheers.

  2. Most readers here think the rising market, including AAPL’s joyous #’s, have to be because of AAPL’s innovation and management. Apple cannot be part of a bubble. One needs to remember AAPL is one of 5-6 other stocks comprising 25% of the S&P and these stocks have wrought the majority of the gains since March’s “recovery.” While this is very good news to the holders of these stocks, the majority of the market has NOT been a part of this “recovery.”

    The Fed‘s infusions are the singular most important reason for the S&P’s gain. When the Fed buys a company’s bonds/supports their debt, it’s not hard to see the reason for the rise…which is a form of asset inflation. Apple was such a recipient of the Fed’s bond purchase. This may sound great to some, buy I think it deserves a loud, “WHY?” Apple isn’t alone…Home Depot is up, MS is up…both recipients.

    Per actual health:

    As long as the Fed “supports,” the market will be healthy and APPL is a good stock to own while the Fed feeds, imo.

    1. All I know is that I now own $100k more AAPL than I did six months ago. And my other stocks aren’t doing shabby either.

      The question is, does the market got bear in October? Take the typical October clawback? Or keep climbing til after the election?

      I’m ready to cash out and buy the dip.

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