On February 20, 2020, the S&P500, one of the most famous indices in the world that groups the 500 most important companies in the United States, marked its maximum, at 3,373.21 points. Then began the crisis of the Covid-19, which dragged the index in just one month (March 23) to 2,237.40 points, a 33.67% drop.

However, right now we are at 2930.32 points, a rise of 31% from the lows of March and a fall of only 13.13% from the highs of February. This does not seem like much considering the difficulty of companies to sell due to the stoppage produced by the massive confinements around the world.

However, this data could be distorted by a phenomenon that is not new but is getting worse. The weight of certain technology companies in the S&P500 is increasing. And therefore the index is increasingly a worse predictor of the severity of the crisis, because since March 23 the FAANG+ index (Facebook, Apple, Amazon, Netflix an Google and a few more big tech companies) has risen 36% and the drop since the end of February is only 5.6%. In other words, this group of companies has pushed the global index up. A rise by Microsoft, Apple or Google may be hiding the fact that there are 100-150 companies that are collapsing because they have a very real risk of going bankrupt.


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