The stock market hits an all-time high in the middle of a pandemic/economic crisis

80 and sunny on Wall Street... The S&P 500 index is kind of like a scoreboard for the stock market, since it tracks the stocks of the 500 most valuable publicly-traded companies in America. On Tuesday, the S&P notched a record close. The all-time high confirms the end of Wall Street's shortest bear market ever.

• On February 19, the S&P closed at an all-time high. By March 13, the S&P had fallen over 20%, confirming we were in a bear market.
• On March 23, the S&P hit its lowest low since the February record. Since then, it has rallied over 50%. Tuesday's record confirms that a bull market started on March 23rd.

Instagram vs. reality... The stock market is drinking rosé on a flamingo float in the Hamptons. The economy is eating Safeway frozen pizza and watching 90 Day Fiancé in bed. The US' GDP shrank at a record rate last quarter, unemployment is at 10%, and we're still mid-pandemic with no vaccine. A few reasons for the market party:

• The US government spent trillions to stimulate the economy by keeping companies' and families' finances afloat. Then the Fed gave us near-zero interest rates to make savings accounts less attractive and stocks more attractive.
• Investors are forward-looking. 3-straight months of falling unemployment and rising retail spending suggest positive momentum. Promising vaccine tests also helped.