Equity returns remained high in 2020, in spite of the uncertainty and volatility caused by the coronavirus pandemic and related partial shutdowns. Initial public offerings (IPOs) ended the year with the highest rate of equity returns, which amounted to 76 percent returns for investors. However, the most compelling financial story in the second half of the year revolved around the huge increase in IPOs via special purpose acquisition companies (SPACs). SPAC mergers refer to the practice of a SPAC, which is a publicly listed company with no operations, merging with a private company to take the latter public without following the normal IPO process. In 2021, however, IPOs and SPAC mergers experienced negative returns.
Why are NASDAQ and S&P 500 relevant benchmarks?
The Nasdaq and the S&P 500 are two of the most important stock indices in the United States, if not the world. The Nasdaq Composite Index includes over 2,500 stocks listed on the Nasdaq stock market, which is the second largest stock exchange globally. The S&P 500 index tracks the stock value of 500 large companies, such as Facebook and Alphabet, listed on the New York Stock Exchange.
What level of impact did the pandemic have on these indices?
Over the past decade, both the NASDAQ Composite index and the S&P 500 index have skyrocketed in value. However, both indices took a hit in February and March 2020 when the uncertainty caused by the pandemic led to investors selling off assets en masse. This dip was short-lived and both indices had fully recovered by the third quarter.
Comparison of equity returns of S&P 500, Nasdaq, IPOs and SPAC mergers in the United States in 2020 and 2021
Profit from the additional features of your individual account
Currently, you are using a shared account. To use individual functions (e.g., mark statistics as favourites, set
statistic alerts) please log in with your personal account.
If you are an admin, please authenticate by logging in again.
Learn more about how Statista can support your business.
PwC. (July 4, 2022). Comparison of equity returns of S&P 500, Nasdaq, IPOs and SPAC mergers in the United States in 2020 and 2021 [Graph]. In Statista. Retrieved October 06, 2024, from https://www.statista.com/statistics/935662/returns-ipos-stock-markets-usa/
PwC. "Comparison of equity returns of S&P 500, Nasdaq, IPOs and SPAC mergers in the United States in 2020 and 2021." Chart. July 4, 2022. Statista. Accessed October 06, 2024. https://www.statista.com/statistics/935662/returns-ipos-stock-markets-usa/
PwC. (2022). Comparison of equity returns of S&P 500, Nasdaq, IPOs and SPAC mergers in the United States in 2020 and 2021. Statista. Statista Inc.. Accessed: October 06, 2024. https://www.statista.com/statistics/935662/returns-ipos-stock-markets-usa/
PwC. "Comparison of Equity Returns of S&p 500, Nasdaq, Ipos and Spac Mergers in The United States in 2020 and 2021." Statista, Statista Inc., 4 Jul 2022, https://www.statista.com/statistics/935662/returns-ipos-stock-markets-usa/
PwC, Comparison of equity returns of S&P 500, Nasdaq, IPOs and SPAC mergers in the United States in 2020 and 2021 Statista, https://www.statista.com/statistics/935662/returns-ipos-stock-markets-usa/ (last visited October 06, 2024)
Comparison of equity returns of S&P 500, Nasdaq, IPOs and SPAC mergers in the United States in 2020 and 2021 [Graph], PwC, July 4, 2022. [Online]. Available: https://www.statista.com/statistics/935662/returns-ipos-stock-markets-usa/