Stock market today August 18, 2020
August 18, 2020
Stock market today
A mixed trading sesion for the US stock market today. Nasdaq and S&P 500 made new record closing highs.Small-cap stocks underperformed, Dow fell about 67 points.
S&P 500: 3,389.78,+7.79(+0.23%)
Dow 30: 27,778.07,-66.84(-0.24%)
Russell 2000: 1,569.17,-16.30(-1.03%)
Stock market data: Yahoo Finance
Stock market commentary
Amazon.com, Inc. (AMZN) stock gained more than 4% today with a stock price at the close of 3,312.49,+130.08 (+4.09%). Tesla, Inc. (TSLA) stock moved higher and gained more than 2% closing at 1,887.09+51.45 (+2.80%). Irrational exuberance with the stock market and stocks moving higher for no apparent reason. Because the 5:1 stock split for Tesla does not affect its lofty valuation, it is the same to buy today 1 stock and get 5 in total at the end of this month. Simple math, the price will be divided by 5. Unless traders expect that again a stock near $377 with a 5:1 stock split will rise again to $1,900. Can this happen again? Stock market history has shown that it can ignore valuation for a long time until logic comes back and investors start to think about stocks as they should, investing and not just speculating.