U.S. stocks snapped a two-month rally in January with the S&P 500 trimming a combined 15.2% November/December gain by just over one percent. Equities seesawed between bouts of heightened volatility stirred by back-and-forth views on continuing economic recovery, mixed success at launching a national COVID-19 vaccination program and plans for large-scale additional fiscal stimulus amid the strained changeover of White House administrations.
- The S&P 500 ended the month with the largest weekly loss since late October. All three major equity indices fell in excess of 3.2% during the last week in January.
- The Dow Industrials shed 623 points (-1.95%) last month, ending January at 29,982 after reaching a new 31,000 milestone high of 31,188 on Inauguration Day (1/20/2021).
- The tech-heavy Nasdaq Composite performed best, rallying 1.44% last month, capping a three-month gain of 18.3%.
- Among major asset classes since the March 23 bear market low, the S&P 500 has risen 68.4%, the Bloomberg Barclays U.S. Aggregate Bond Index gained 5.6%, and the Bloomberg Commodities Index rose 29.2%.
The Monthly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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