U.S. stock futures increase after Wall Street wraps up historically strong month
The Dow rallied 11.8 % of November, posting the best one month overall performance of its since January 1987. The S&P 500 and Nasdaq Composite rose 10.8 % along with 11.8 %, respectively, for their strongest month developments since April.
November’s rally came amid a slew of good coronavirus vaccine news, that lifted hope of a strong economic recovery and sparked a surge in beaten-down value labels. The iShares Russell 1000 Value ETF (IWD) rallied 13.4 % with the month, and outpaced the growth counterpart of its, the iShares Russell 1000 Growth ETF (IWF) by three much more than percentage points.
“Vaccine information has additional buoyed spirits with many therapeutic/preventative lights immediately at the end of the pandemic tunnel being a different set of excellent data points,” wrote Tobias Levkovich, chief U.S. equity strategist at Citi. However, he added investors may be getting much too complacent about the odds the market still faces.
At this point, the industry is actually either “anticipating an even better 2021 profits outlook perhaps tied to fast inoculation-driven recovery and continued business cost containment, or maybe the S&P 500 might be ahead of itself within the near term, especially when considering no new short term fiscal stimulus and the effect of second trend outbreaks,” Levkovich said.
Data compiled by Johns Hopkins Faculty shows that more than 13 million Covid 19 cases have been confirmed in the U.S. coupled with over 266,000 deaths. In New York, Gov. Andrew Cuomo claimed the state was applying emergency hospital measures as cases continue to rise.
Meanwhile, Federal Reserve Chairman Jerome Powell called the U.S. economic outlook “extraordinarily uncertain.”
“The increase in new COVID-19 cases, both abroad and here, is actually regarding and might prove demanding for the next few months,” Powell said in prepared remarks. “A complete economic recovery is not likely until individuals are confident it is safe to reengage in a broad range of activities.”
Shares of Zoom Video dipped more than four % in after hours trading despite the video conferencing giant reporting better-than-expected earnings for your third quarter. Tesla’s stock popped 3.4 % following S&P Dow Jones Indices stated the electric-car maker is going to be added to the S&P 500 on Dec. twenty one in a single action.