With Nvidia earnings upcoming, the S&P 500 is angling toward its best August in three years and, not counting the coronavirus pandemic rebound in 2020-21, its strongest August performance since 2018.
Heading into the final week of the month, the S&P 500 index is up 0.9% in August. A year ago, the S&P 500 declined 1.8% in August and in 2022, the index fell 4.2% for the month. The advance so far this month is on pace to be the S&P 500's best August performance since its 2.9% jump in 2021, according to MarketSurge charts. In August 2018, the index gained 3%.
Among the S&P 500 stocks leading the charge in the stock market this month have been Kellanova, which has surged more than 38% on news that it would be acquired by Mars for $36 billion. Fortinet stock rallied 28%, reversing a six-month downtrend after reporting stronger than expected second-quarter billings and margin.
Meanwhile, Eli Lilly and Starbucks have both advanced 18.6%.
Meta has also seen gains, with the Facebook-parent up more than 12% in August and once again toying with a buy point. Walmart and Netflix are both up around 10% on the month. McDonald's has added 9%.
Nvidia stock and Advanced Micro Devices have gained more than 5%. Procter & Gamble and Vistra have also jumped around 5%.
S&P 500 In August 2021
The last time the S&P 500 gained ground in August was in 2021. That gain came as the index was in the midst of a seven-month long run up, part of its rebound from the Covid-19 pandemic. The S&P 500 was also posted an overall earnings growth rate of more than 95% for that year's second quarter earnings season. That was the largest such increase since the fourth quarter of 2009, during the economy's rebound from what is generally labeled the Great Recession.
In 2021, the federal government was injecting trillions of dollars into the economy in the form of coronavirus relief, sending out direct payments, unemployment insurance and other forms of support.
In August 2021, Nvidia stock surged 14.8%, Netflix stock added 10% and Tesla gained 7%. Meanwhile, Moderna advanced 6.5%.
Apple, Microsoft and Amazon.com all added around 4% in August 2021.
At the time, analysts noted that the strong S&P 500 performance in August came as a result of a massive earnings comeback, characterized by a large number of beats, with corporate profits jumping compared to the pandemic bottom.
Please follow Kit Norton on X @KitNorton for more coverage.
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