US STOCKS-The pandemic bull market: S&P 500 closes at record high

* S&P record closing high confirms bull market
* Nasdaq hits another record closing high
* Home Depot, Walmart shares down at close
* Amazon leads gainers in the S&P 500

(Updates with closing prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 18 (Reuters) - The S&P 500 closed at a record
high on Tuesday, rebounding from huge losses triggered by the
coronavirus pandemic and crowning one of the most dramatic
recoveries in the index's history.
Trillions of dollars in fiscal and monetary stimulus have
made Wall Street flush with cash, pushing yield-seeking
investors into equities. Amazon AMZN.O and other high growth
technology-related stocks have been viewed as the most reliable
to ride out the crisis.
The S&P record confirms, according to a widely accepted
definition, that Wall Street's most closely followed index
entered a bull market after hitting its pandemic low on March
23. It has surged about 55% since then.
That makes the bear market that started in late February the
S&P 500's shortest in its history.
Since the March 23 closing low, the S&P posted the largest
gain in a 103-day period in 87 years, according to Refinitiv
data. Doubts about the underlying health of the economy, however,
persisted in Tuesday's session, with lukewarm reactions to
bumper results from Home Depot HD.N and Walmart WMT.N
limiting gains.
The S&P 500 flirted with all-time highs for several sessions
before finally hitting a new record, raising questions about
whether this run of gains could last.
"The S&P 500 has been impressive and has created a lot of
wealth, but I am not sure that reflects the overall health of
the economy," said Patrick Leary, chief market strategist at
Incapital.
"The rally has more to do with asset inflation, which is
fueled by all the liquidity and all the continued support in the
economy as well as the weakening dollar," he added.
The Dow Jones Industrial Average .DJI fell 66.84 points,
or 0.24%, to 27,778.07, the S&P 500 .SPX gained 7.79 points,
or 0.23%, to 3,389.78 and the Nasdaq Composite .IXIC added
81.12 points, or 0.73%, to 11,210.84.
Amazon, which rose 4.1%, was the largest gainer in the S&P
500.
Meanwhile Nasdaq clocked its 18th record closing high since
early June, when it confirmed its recovery from the coronavirus
sell-off. Tuesday's record was its 34th record close so far this
year compared with 31 record closing highs in 2019 and 29 in
2018.
Consumer discretionary .SPLRCD rose the most among major
S&P sectors on strength in Amazon while technology stocks
provided another major support to the benchmark index.
Home Depot Inc HD.N reported its biggest rise in quarterly
same-store sales in at least two decades, however, its shares
fell 1.1% to $285 after analysts cautioned that its sales might
have hit their peak. Inc WMT.N dipped 0.9% despite posting its
biggest-ever quarterly growth in online sales.
Data on Tuesday showed U.S. homebuilding accelerated by the
most in nearly four years in July in the latest sign the housing
sector is emerging as one of the few areas of strength in an
economy suffering a record slowdown. That further
added to market optimism.
Minutes from the Federal Reserve's recent meeting due on
Wednesday may provide some insight into how the central bank
sees the recovery playing out. The Fed has cut rates to near
zero to bolster business through the pandemic.
Declining issues outnumbered advancing ones on the NYSE by a
1.40-to-1 ratio; on Nasdaq, a 1.66-to-1 ratio favored decliners.
The S&P 500 posted 31 new 52-week highs and no new lows; the
Nasdaq Composite recorded 70 new highs and 18 new lows.

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