Stocks surged on Friday as traders wrapped up a strong week amid political uncertainty and downside positive vaccine news.
The S&P 500 finished the day at 3,638.35, up 0.3%, a record high. The Nasdaq Composite rose 0.9% to 12,205.85 and closed at an all-time high. The Dow Jones Industrial Average gained 37.90 points or 0.1% to close at 29,910.37. Friday’s session ended at 1 pm.
The Dow and S&P 500 rose 2.2% and 2.3% respectively for the week. Meanwhile, Nasdaq reported a weekly profit of around 3%. Earlier in the week, the Dow had jumped above 30,000 for the first time, and hit an all-time high for the first time.
“What we are seeing today, this week and this month is a continuation of the rise of optimism,” said Mike Zigmont, Head of Trading and Research, Harvest Volatility Management. “The environment has been better and better for risky assets” as drugmakers release more positive Kovid-19 vaccine data and risks on the political front.
The Cboe Volatility Index (VIX), Wall Street’s favorite fear gauge, briefly fell below 20 on Friday for the first time since late February. It later rebounded to trade at 20.84.
Retailers led early gains as investors placed bets on a strong holiday shopping season. The SPDR S&P Retail ETF (XRT) rose 0.9% and reached an all-time high. Etsy shares gained 10.7%, and Gamestop gained 9%. Adobe Analytics gained 0.3% and Shopify climbed 1.5% after Adobe Analytics saw its Thanksgiving Day online sales soar to a record $ 5.1 billion.
President Donald Trump’s comments were also helped, saying he would leave the White House if the president voted for the presidential election at Electoral College.
“Of course I will. Sure I will. And you know that,” Trump said. He said, however, that it would be difficult for him to accept it because “we know there was a massive fraud.” Trump, however, provided no concrete evidence of widespread voter fraud.
Historical month for stocks
Friday’s gains soared to market boom this month, which was spread by a portion of positive coronavirus vaccination test data.
Earlier in November, Pfizer and BioNTech stated that their vaccine was more than 90% effective. Modern also stated that its drug was highly effective in one trial.
That data helped the Dow increase 12.9% in November, putting it on track for its biggest monthly gains since January 1987. The S&P 500 and Nasdaq are 11.3% and 11.9% respectively in November. Meanwhile, the small-cap Russell 2000 is on track for its best month by nearly 20%.
The sharp gains in November were led by beaten-down price shares as positive vaccine news raised hopes for a strong economic recovery.
The IShares Russell 1000 Value ETF (IWD) is up 14.6% this month. Its growth counterpart, the iShares Russell 1000 Growth ETF (IWF), has grown by 10.1% over that time.
“As we inch closer to that ultimate health solution… we are starting to broaden market participation and rotate through the course of this epidemic into some of the more impaired regions,” US Bank Senior Investment Director Said Bill Northey. Money management. “As we turn on the coroner, that pent-up is about to allow economic activity to return.”
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