Despite the unprecedented challenges that rocked the year 2020, the S&P 500 closed with an 18,4% gain on a total return basis.
According to the research data analyzed and published by Comprar Acciones. Following a 12,5% decline in March 2020, the index recovered all losses in August 2020 and set a total of 33 new records in 2020.
Based on data from Yahoo, the S&P 500 fell from 3 370 points prior to the pandemic to 2 447 points in March 2020. However, as of 25 December 2020, it had shot back up to 3 662 points.
Similarly, the Nasdaq fell from 9 700 points before the pandemic to about 5 300 points in March 2020. But it had recovered to 12 595 points by 14 December 2020.
The Dow Jones Industrial Average (DJIA) also shed 8 000 points at the peak of the pandemic. By 14 December 2020 it had recovered to 30 199 points, higher than its pre-pandemic level of 29 000 points.
Like the S&P 500, the DJIA closed 2020 at a record high, gaining 7,25% on the year. For Nasdaq, 2020 was its best year since 2009 as it gained 43,6%.
The indices’ performance was attributed to big tech stocks that flourished in the pandemic as others languished. To illustrate, the top 10 stocks on the S&P 500 accounted for 27,4% of the index’s total market value.
Apple led the pack, gaining 82,3% on a total return basis. Amazon followed with a 72,6% increase. Microsoft was third with 42,5%. Together, the three accounted for 53% of the total returns that the index posted during the year.
Information technology was the best-performing sector, posting a 43,89% increase. Consumer discretionary was second with 33,3%. On the other hand, energy was the hardest hit sector, suffering a 33,7% decline.