Outliers/could’ve been crown jewels of S&P 500

I

This year was full of surprises. Though the markets remained fairly volatile, it made some huge moves this year. The S&P 500 began its downfall(after closing at its highest at 3,386.15) February 20th after the declaration of the pandemic and lockdowns. It took 6 months to come out of it, when on 18th of August it closed at a record 3,389, erasing the losses of the pandemic.

After that it was all good for the S&P 500. It went on going up and up, day-by-day beating its previous record high closes.

A milestone achieved along the way was the announcement from Moderna after Pfizer saying their vaccine showed a 94.5% efficacy. This announcement raised the S&P 500 to its local high of 3,626.91.

It closed at its all time high on December 28 at 3735.36.

II

Though it achieved some milestones in 2020, It was a tough year for S&P 500.

The could’ve been crown jewels are: –

  • Zoom – which changed the way we meet, let alone take business meetings.
  • Moderna – which was one of the candidates that put forward a vaccine for Covid-19.
  • Tesla – which was hands down the best performer; had under went a 4:1 split and even after that its individual shares were trading higher than its last year values, before the split.(It was later inducted into the S&P 500, but still was out of it for the majority of this year.)

Tesla, Moderna and Zoom had a joint market cap of almost exactly $100 billion on Jan. 1. They now have a combined market value of just under $800 billion. They were a half trillion dollars smaller than Facebook at the beginning of the year. They are now a bit bigger.

Pic Courtesy: John Authers, Bloomberg

Had these companies been a part of the S&P from the start of this year, we would have seen even higher strides in the index.

 

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Shreesha S
Shreesha writes about Business, Finance and Tech for The Snippets Journal. He is also the Founder and Head of Content Development.
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