The S&P 500 hit a record high shortly after opening on Tuesday.
The S&P 500 traded 0.3% above its record high of 3,393.52 set on Feb. 19, before the coronavirus pandemic sent it tumbling 34% below its recent high.
Since hitting its Feb. low, the index has jumped more than 54%. The gains have largely been the product of the strong performance of tech companies, such as Amazon and Facebook, which have seen 27% gains this year.
One development that has helped the index recover from its record losses in February is the Federal Reserve on March 15 cutting its interest rate target to between 0% and 0.25% in an emergency response to the pandemic. Low interest rates make stock purchases more enticing as they can promise a higher rate of return for investors.
Federal Reserve Chairman Jerome Powell has repeatedly said that he will keep interest rates at or near zero as needed to counteract the effects of the pandemic.
Shortly after setting a new record high Tuesday, the index retreated into negative territory but has rebounded into positive territory.
The Nasdaq also hit a new record, trading at 11,208.05 on Tuesday, beating its former record of 11,108.071 from Aug. 7.
The Dow Jones Industrial index is down 0.34% in intraday trading.
