The S&P 500 closed in the green for the third straight year after rising 26.89% in 2021, creating $8.6 trillion in value. The Dow Jones & Nasdaq indexes gained 18.73% & 21.39% in 2021, respectively.
More Details🧐 U.S stock exchanges went on a wild ride in 2021, with the S&P 500 notching 70 all-time highs along the way, the second-highest number after 1995’s 77 record highs.
The year started out with a meme-stock frenzy fueled by retail traders. AMC Entertainment’s stock skyrocketed more than 1,200% while GameStop’s rallied about 700%.
2021 was also a record year for IPOs, albeit not the most successful in terms of returns. With over 1,000 making their trading debuts in 2021 led by Rivian, IPOs averaged a 10% decline post-IPO, versus a 76.3% increase in 2020.
We also saw regulatory crackdowns on U.S-listed Chinese stocks, namely Didi, which announced it would delist from the New York Stock Exchange six months after its IPO. Next year, experts expect Chinese tech companies to list more on their local exchanges, like Hong Kong or Shanghai.
Why is this Important🤔 In a year characterized by supply-chain issues, new COVID variants (Delta & Omicron), & a geopolitical stand-off between the U.S. & China, U.S markets soared.
Credit mainly goes to a successful vaccine rollout, & an aggressive Fed pumping money into the economy. Energy & real estate were the best-performing sectors in the S&P 500 this year, surging more than 40% each. Tech & financial services also rose more than 30%.