1-Year Tour From Market Crash To Boom: 5 Top ETFs

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It’s been a year since the U.S. stock market collapsed to a deep bear territory in the fastest decline in history triggered by the COVID-19 pandemic. The crisis brought economy to a standstill, leading to lockdowns and social distancing across the globe. In fact, it has ended the longest ever 11-year bull market.

The pandemic has changed the consumer landscape into a purely digital one, leading to an e-commerce boom. People have chosen to stay indoors in order to avoid direct contact, which in turn has boosted demand for cloud computing, gaming, e-sports and streaming services. As a result, the technology sector was the strongest performer and proved its resiliency amid the pandemic. Other sectors were hit hard.

The stock market staged a strong rebound from the lows and is currently hitting new highs with the major bourses crossing new milestones. Both the S&P 500 and the Dow Jones are up nearly 82% each from the low it hit during the pandemic. The S&P 500 is advancing to make a new milestone of 4,000 while the Dow Jones hit 32,000.

Rounds of massive stimulus measures by the government and the central banks as well as the race for coronavirus vaccines or treatment infused optimism into the economy. A slew of biotech firms reported encouraging trial results for the effectiveness of vaccines against the novel disease. And guess what, a few firms like Pfizer (PFE - Free Report) and Moderna (MRNA - Free Report) started to distribute the vaccines by the end of 2020. The start of vaccination has strengthened investors’ confidence in the economy, leading to expectations for a faster-than-expected recovery.

Additionally, continued progress on more coronavirus vaccines and faster vaccine deployment have been driving the stocks higher this year. President Joe Biden expects to have enough coronavirus vaccines for all Americans by May 1. The latest NPR analysis of archived data from the CDC's vaccination tracker revealed that distributions of vaccines skyrocketed in the last two weeks. Since early January, distribution reached between 8 million and 10 million total doses a week and around 20 million doses both in the last week of February and again the first week of March. If Pfizer (PFE - Free Report) and Moderna (MRNA - Free Report) keep up with its goal of delivering the vaccines, the distribution could reach 100 million for both. Recently, the FDA approved Johnson & Johnson’s JNJ single-dose vaccine for use in the United States.

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