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Dow Jones, S&P 500, and Nasdaq Composite all surged between 10-12% during the month of November as markets remained upbeat on positive news of vaccine rollout. Analysts expect the market to continue its run ahead in December and end 2020 on a strong note.
On Monday, November 30, the Dow Jones Industrial Average registered its best monthly performance in three decades since 1987. The Dow index soared on the heels of major optimism surrounding the arrival of the COVID-19 vaccine.
Giants like Moderna Inc (NASDAQ: MRNA), Pfizer Inc (NYSE: PFE), AstraZeneca Plc (LON: AZN) have been conducting their last stage trials and waiting for the FDA nod. As per industry analysts, the US Food and Drug Association can give approval by mid-December and kickstart the vaccine rollout.
Market economists are also suggesting that the vaccine rollout will serve as a catalyst for faster global economic recovery. As a result, stock markets worldwide remained upbeat throughout the month of November. On the vaccine news, the Dow Jones (INDEXDJX: .DJI) surged more than 10% during the month of November. It further continues on Tuesday, as Dow added another 185 points closing 0.6% higher at 29,823.92.
Central banks and financial institutions continue to push more stimulus to keep the economic engine running in a healthy condition. Interestingly, the European stock market has outperformed the US during the month of November. Mark Haefele, CIO of UBS Global Wealth Management said:
“Investors have focused … on the potential for a return to normal social and economic activity based on the widespread rollout of effective vaccines in the first half of 2021. We see further upside for global equities in this environment, but also expect market leadership to continue to shift”.
Dow Is Ending 2020 on a Strong Note Boosted by Vaccine News
During the month of November, all top-three indices – Dow Jones, Nasdaq Composite (INDEXNASDAQ: .IXIC), and S&P 500 (INDEXSP: .INX) – gave a strong closing surging anywhere between 10-12%. Market analysts are predicting that the global market will continue to surge ahead this month. Tom Lee of Fundstrat Global Advisors said that the market is heading for a “very strong finish for 2020”.
The COVID-19 vaccine news will continue to drive markets ahead. Data coming from China is also giving hope for a strong market recovery for the global markets. Bill Northey, senior investment director at US Bank Wealth Management in Minneapolis said:
“There is this optimism about what it means as we see news around vaccines emerge. As we look toward a health solution, we could be sitting on a coiled spring of economic activity, but it could take a while for it to be unleashed.”
On Tuesday, the Federal Reserve Chairman Jerome Powell called the US economic activity as “extraordinarily uncertain”. Powell said:
“The rise in new COVID-19 cases, both here and abroad, is concerning and could prove challenging for the next few months. A full economic recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities.”
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