The stock market has been on a tear lately, with investors looking for growth opportunities in the wake of the coronavirus pandemic. The S&P 500 has surged more than 20% since the start of 2021, and the Dow Jones Industrial Average has gained more than 15%.
The surge in stock prices has been driven by a combination of factors, including a strong economic recovery, low interest rates, and a surge in corporate profits. Investors have also been encouraged by the rollout of vaccines, which has helped to reduce the risk of a second wave of the virus.
The stock market rally has been broad-based, with all sectors of the market participating. Technology stocks have been particularly strong, with the Nasdaq Composite Index up more than 30% since the start of the year.
Investors have also been drawn to stocks that are expected to benefit from the economic recovery. These include companies in the travel, leisure, and hospitality sectors, which have been hit hard by the pandemic.
At the same time, investors have been shying away from stocks that are seen as more vulnerable to economic downturns. These include energy stocks, which have been hurt by the collapse in oil prices.
The stock market surge has been a boon for investors, but it has also raised concerns about a potential bubble. Some analysts have warned that the market may be overvalued, and that a correction could be in the offing.
For now, however, investors appear to be undeterred. With the economy continuing to recover and corporate profits on the rise, the stock market looks set to remain on an upward trajectory.