It’s been a historic month for the Dow Jones, as it logged its best June return since 1938.
Although at the weeks end on June 28 gains were moderate, the overall gain of 7.2 percent was the best it’s been since 1938 when it surged 24.3 percent.
The S&P 500 index rose its best June return with a 6.9 percent gain to 16.96 percent, reaching an all-time high, according to CNBC, the best since 1955 when it rose 8.2 percent, according to MarketWatch.
Nasdaq closed with a 6.9 percent return this month. That’s its best since 2000 when it gained 16.6 percent. The S&P 500 on June 20 notched its first record close since April 30, while the Dow is off less than 1% short of its Oct. 3 all-time closing peak.
In 1938, the U.S. economy was struggling to recover from the Great Depression, until Franklin D. Roosevelt got a $3.75 billion spending program approved by Congress. It stimulated the economy, increasing deficit spending.
Not surprisingly, the unemployment rate had hit 19 percent in June 1938. This time around, unemployment is at 3.6 percent.
The University of Michigan released its consumer confidence reading for the month of June, with its index at 98.2, above the expected 98 given by economists polled by MarketWatch.