(Bloomberg) -- In another sign of how fast and broad the U.S. equity market bounce has been, 98% of S&P 500 members now trade above their 50-day moving average, most on record in data going back to 1990.
This isn't a surprise, according to Ken Peng, Citi Private Bank's head of Asia investment strategy. “It was a very sharp and short recession and we're now coming out of it in a clear V-shaped recovery. You see that happening in capital markets and you will see that happening as well in the real economy.”
U.S. payrolls unexpectedly rose by 2.5 million in May, compared with forecasts for a sharp decline, and the jobless rate fell to 13.3% from 14.7% in April. The data signaled the economy is picking up more quickly than anticipated from the coronavirus-inflicted recession amid reopenings and government stimulus.
The S&P 500 has surged 44% since its March 23 bottom as investors pin hopes on a quick recovery supported by policy stimulus. That's the best advance over any 53 trading days since 1933. The gauge jumped for the ninth time in 11 days to end at 3,232.39, above where it started the year.
“Yes, the whole market has been talking about rotation and catchup but that's not finished,” Peng said, noting that on the S&P 500, about 200 stocks are up year to date while 300 stocks are still down.
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