Wall Street is wrapping up its best August performance since the 1980s.
The S&P is up 7.2 percent this month to date, putting the index on track for its biggest August gain since 1984. The Dow Jones Industrial Average has rallied more than 8 percent this month and is also headed for its best August in 36 years.
This month’s gains have pushed the S&P 500 to record levels, officially confirming a new bull market has started. The Dow, meanwhile, erased its 2020 losses on Friday.
Two big stock splits took effect on Monday: Apple’s 4-for-1 and Tesla’s 5-for-1 split. Both companies saw shares rise sharply, with Apple advancing by 4 percent and Tesla jumping by close to 10 percent.
Monday’s gains are the latest in a string of strong performances since the companies announced the stock splits. Since Apple announced July 30 it had board approved a 4-for-1 stock split, stock is up more than 32 percent. Tesla has skyrocketed more than 70 percent since it announced a 5-for-1 stock split on Aug. 11.
This year, smaller traders have been more actively participating in the market. The popularity of online day-trading platforms such as Robinhood — which lets users buy as little as $1 worth of a company’s stock — is giving younger and less wealthy investors the chance to get a toehold in an expensive market.
However, some investment professionals worry that eye-popping valuations are attracting less-sophisticated investors who have little experience navigating market volatility, and — in an economy where inequality and financial insecurity are on the rise — even less margin for error.
This week also marks the first trading session for a newly rebalanced Dow: Salesforce, Amgen and Honeywell have been added, replacing longtime components Exxon Mobil, Pfizer and Raytheon Technologies.