Question

1. (Exam 1 & StockTrak) Over our StockTrak performance period from March 6^th – May 1^st, the SP500 fell 33% from all-time highs due to COVID-19, then partially retraced from 2200 lows. Some sectors led the retracement higher, while others have lagged. Which of the following statement is most likely FALSE:

1. If the Information Technology sector falters in the future, the SP500 will most likely struggle to make new highs unless there is support from lagging sectors
2. The NASDAQ index, which is more heavily weighted in Information Technology stocks than the SP500, outperformed the SP500 index over the StockTrak performance period ending May 1st
3. If there is second wave of COVID-19 cases, the SP500 could make new lows despite recently aggressive monetary and fiscal policy
4. Due to tremendous losses in the SP500 index from COVID-19, the Information Technology sector’s weight in the SP500 index was lower on May 1^st than it was on March 6^th
5. During this most recent earnings season, management struggled to provide sales and earnings guidance for fiscal year 2020, sometimes withdrawing guidance altogether

Answer 1

B) The NASDAQ index, which is more heavily weighted in Information Technology stocks than the SP500, outperformed the SP500 index over the StockTrak performance period ending May 1st.

REASON

The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. There is over USD 9.9 trillion indexed or benchmarked to the index, with indexed assets comprising approximately USD 3.4 trillion of this total. The index includes 500 leading companies and covers approximately 80% of available market capitalization.