Despite surging unemployment and economic uncertainty surrounding the devastating consequences of COVID-19 lockdowns, the stock market is continuing to recover at a rapid pace. Data shows that new investors in S&P 500 tech stocks may be part of the reason why.
, new user positions in the popular stock trading app Robinhood have tripled since the beginning of March – right when COVID-19 restrictions began.
As of May 14, there were over 12 million user positions in the S&P 550, with many put into tech companies. Many tech stocks are outperforming the S&P 500 during the second quarter of 2020, with the Big Four – Apple, Amazon, Alphabet and Facebook – all outperforming the S&P 500.
Overall, as of June 8, the S&P 500 is down just 1.1 percent on the year, having already made up the sharp decline suffered during the beginning of COVID-19 restrictions in march.
