The summer swoon has turned into a white-hot stock market, with the Standard & Poor’s 500-stock index on track for its best August performance since 2000. Memories of the July stock market drop, which was caused mainly by geopolitical angst following the downing of a passenger jet over eastern Ukraine and resulting tensions between Ukraine and Russia, are fading fast.
The bull is back on Wall Street, witnessed by a 3.7% gain this month for the S&P 500, putting it on track for its best August since a 6.1% return in August 2000. The bullish August has propelled the index above 2000 for the first time and to new record highs.
Driving the gains this August has been fresh data on the economy that point to stronger economic growth, a strong second-quarter earnings season, still-low interest rates and U.S. companies deploying billions of dollars in merger-related deals. That good news has resulted in a post-recession high in consumer confidence this month, according to the Conference Board. Investors have shrugged off geopolitical fears for the most part, instead focusing on improving business fundamentals.