The S&P 500's rise and rise

The S&P 500’s rise and rise

On 6 March 2009, the S&P 500 index dropped to an intraday low of just 666. Reporting on the slide, the financial press dwelt on the collapse of North America's biggest banks, the ongoing troubles of General Motors, and further job losses.

Last week, the S&P 500 burst through the 2,000 barrier to close at its highest ever level. The movement highlights the recovery story going on in the US, and its significance for the rest of the world. “It is difficult to get too excited about other regions if you are negative about the US, given the impact it has on other markets,” said Hargreaves Lansdown senior analyst Laith Khalaf. Investors are now arguing over whether the US market is overpriced. Still, most agree there are compelling stories within it, such as the shale gas boom and the return of corporate spending. A spring se...