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Market Soar in Best Week Since April Thumbnail

Market Soar in Best Week Since April

The US stock markets rallied last week, as the Dow (+6.9%), NASDAQ (+9.0%) and S&P 500 (+7.4%) exhibited their largest gains since April.  Bonds (BOTH taxable and muni tax-free) also gained about 0.5% to 1% last week, so it was essentially green across the screen, so to speak.  And if you like that, then you’ll LOVE the fact that Dow futures are up another 5% this morning.  As I noted in my lengthier description last Friday, the markets rallied last week because the election results mostly indicated that there would be a divided Congress, limiting extreme legislation from being passed.  This morning’s strong rally is because Pfizer announced a vaccine that may provide a 90% efficacy, which is far more efficient than previously projected for a vaccine.

 

From a fundamental perspective, we had a favorable jobs report last week, as the economy gained more jobs in October than previously expected, lowering the unemployment rate to 6.9%.  Other fundamentals, such as better-than-expected 3rd quarter GDP results, a better-than-expected rise in manufacturing activity, and corporate earnings exceeding expectations are all having very favorable impacts on the markets.  Now, with a vaccine potentially in the wings, hopefully this will help ease people’s minds of being able to get back to “normal” again.  In reality, I don’t see “normal” for at least another year or two, but most areas of the economy do not necessitate normality.




TAX SERVICES PROVIDED BY MICHAEL MENNINGER, CFP. VOYA FINANCIAL ADVISORS DOES NOT PROVIDE TAX SERVCES. INVESTMENT ADVISOR REPRESENTATIVE AND REGISTERED REPRESENTATIVE OF, AND SECURITIES AND INVESTMENT ADVISORY SERVICES OFFERED THROUGH VOYA FINANCIAL ADVISORS, INC. (MEMBER SIPC.) MENNINGER & ASSOCIATES, INC. IS NOT A SUBSIDIARY OF NOR CONTROLLED BY VOYA FINANCIAL ADVISORS, INC. CN1404454_1121