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With a plus close, the US equity markets may look back on a strong 2020. But between indices and industries, there are big differences between winners and losers.
The index is heading higher after New Years Eve trading. Stock Photography.
The broad S&P 500 index ended trading this year up 0.8 percent. As a result, the index is up nearly 70 percent from the low in March, and the full-year figure will be just over 15 percent.
“Traders and investors are satisfied with a 15 percent increase for the S&P 500. The vaccine launch is a positive factor, balanced by an increase in crown drops,” says Oliver Pursche, CEO of Bronson Meadows Capital Management.
The Nasdaq Heavy Technology Composite Index has strengthened further. The New Year’s Eve trade ends with a quote close to zero, giving an annual result of more than 43 percent. It’s the index’s strongest year since 2009, and it’s tech giants like Microsoft, Apple, Facebook and Google’s owner Alphabet that have acted as the locomotives.
The Dow Jones Industrial Average is the underperforming of the major indices, rising 5.8 percent. New Years Eve ends the Dow Jones at over 0.7 percent.
The technology sector is the strongest in the US, with the stock market rising 41 percent. The energy sector, which in the United States is made up mainly of oil companies, has been the worst. The price of oil has risen during the year.
For the market, the new stimulus measures for the economy are now high on the agenda. Much can be decided next week, when Georgia’s two Senate seats are up for grabs when the state goes to the polls. The result could determine what control current President Joe Biden will have over Congress.
