November 9 – 13, 2020 Recap
Equities Rotate into Cyclicals
U.S. stocks rallied last week after breakthrough vaccine trial results eased global uncertainty. A drug maker’s COVID-19 vaccine prevention efficacy of over 90% spurred rotation into value and cyclical industries and out of growth and more defensive-oriented sectors. The Nasdaq 100 slumped more than 1.2%, while the small cap focused Russell 2000 Index surged more than 6% to a new record high. Even as the third quarter earnings season is nearing completion with S&P 500 companies beating forecasts at a record pace, analysts’ 2021 forecasts have increased just 1% since early September.
For the week, the Dow Jones Industrial Average jumped 4.08% and the S&P 500 gained 2.21% to close at a fresh all-time high. The technology-heavy Nasdaq Composite (-0.53%) fell fractionally, logging its third loss in the past four weeks.
The Weekly 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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