U.S. equities posted strong gains in November, driven by breakthrough coronavirus vaccine progress that may win FDA emergency use approval by mid-December. Topping 30,000 for the first time, the Dow Industrials clinched its best November performance within a presidential election year since 1928. Remarkably, the broader S&P 500 increased the most since April’s 13% rally when equities initially rebounded from the selloff in the spring. With trial vaccine prevention rates as high as 95%, together with increased election clarity for a divided Congress, bullish investors unleashed a powerful November rotation into small caps and cyclical-based sectors in which Value outperformed Growth by nearly 3.30%.
- The S&P 500 roared back nearly 11% in November, widely erasing its 6.4% prior two-month loss (-2.7% in October).
- The Dow Industrials surged 12.1% for its best monthly gain since January 1987. Before paring stronger gains late in the month, on November 24 the Dow posted a milestone finish above 30,000 for the first time ever, ending the month up 6.1% YTD.
- The tech-heavy Nasdaq Composite rallied 11.9% last month, finishing near several all-time highs set during the month and extending its YTD gain to 37.1%.
- Among major asset classes since the March 23 bear market low, the S&P 500 has risen 63.9%, the Bloomberg Barclays U.S. Aggregate Bond Index gained 6.3%, and the Bloomberg Commodities Index rose 19.9%.
- The U.S. Dollar spot index tumbled 2.3% in November, its largest percentage loss since July, ending near a two-and-a-half-year low. On a brighter note, a weak dollar (-4.7% YTD) makes U.S. goods more attractive to foreign buyers.
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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