U.S. stocks have come roaring back despite millions of people still unemployed due to pandemic-related layoffs and the threat of COVID-19 lurking.
The S&P 500 was up more than 1% Monday as it returns to pre-COVID-19 levels following a massive drop in March due to the global pandemic. The Nasdaq Comopsite Index has also seen a similar trajectory and hit a new record high Monday at 9,824.
Airlines and energy companies are seeing notable rallies, The New York Times noted, as social distancing restrictions loosen across the country and oil prices normalize.
Tech companies are also contributing to the stock market rebound, including Seattle-area stalwarts Microsoft and Amazon, which are seeing shares reach record high levels.
Microsoft stock is up around 40% since the end of March as the boom in productivity, cloud and collaboration software lift the company up. Shares reached $188.36 on Monday, closing in on a record price set in February.
Amazon, meanwhile, has seen shares spike 50% since March 12. The e-commerce giant has emerged as a lifeline for customers sheltering at home during the pandemic. RBC Capital Markets increased its 12-month price target for Amazon stock to $3,300 on Monday, up from its previous estimate of $2,700. Shares are up around 25% this year, trading Monday at an all-time high of $2,511.
Shares of travel giant Expedia are also steadily increasing after crashing in February and March. The company’s stock has doubled since March 18 and is up 40% this month, even as questions swirl about the future of travel.
The housing market seems to be coming away rather unscathed from the pandemic, which is good news for Zillow Group and Redfin investors. Both stocks have tripled in value since March lows.
Other Seattle-area companies seeing shares increase include Adaptive Biotechnologies (130%); Impinj (123%); Avalara (70%); Smartsheet (40%); and T-Mobile (40%).
Back in February, longtime investor and Code.org CEO Hadi Partovi said Seattle might come out ahead of other metro areas if economic activity plunges. His logic was that recessions hurt all companies, but those most impacted are ones with unprofitable business models or shaky balance sheets. Microsoft and Amazon, among others, are certainly weathering the COVID-19 storm and may come out of the economic crisis stronger than ever.
“In a recessionary environment, Amazon would be well ahead of its competitors at the tail end of that recession,” said Partovi, a former Microsoft manager and founder of iLike. “At the front end, nobody wants it. But three years later, who survived the best?”
