The U.S. stock market has come a long way in a short time.
The S&P 500 index closed at a record high Tuesday, nearly six months after coronavirus lockdowns that shut down much of the economy sent the markets plunging.
As the market fell deeper , the Dow Jones Industrial Average posted four-digit losses on multiple trading days 鈥� including a shocking drop of , or 13%, in a single day. Stock prices fell so fast that automatic kicked in several times, forcing temporary trading halts.
But after plummeting 34% from its Feb. 19 peak, the S&P 500 has staged a steady recovery 鈥� gaining more than 50% from its low on March 23. On Tuesday, the S&P 500 finished at 3,389.78 鈥� an all-time closing high.
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The Dow has made a similar rebound 鈥� rising about 9,600 points, or 53%, from its low 鈥� but remains about 1,800 points below its highs.
With countless businesses closed and tens of millions out of work, the economy contracted at a in the second quarter. After soaring to 14.7% in April, unemployment fell to a still-high 10.2% last month.
But investors have been betting on an economic recovery boosted by record-low interest rates and other stimulus measures from the Federal Reserve and Congress.
And yet renewed around the country, followed by a new round of lockdowns, have cast doubts on when the recovery will take hold.
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