Top

LiveAfterQuit

“Strong Start To December: How The Stock Market Will Fare For The Remainder of 2020

The stock market kicked off December 2020 on a strong note, with the major U.S. indices rallying to new record highs. After months of volatile markets due to the coronavirus pandemic, investors are suggesting that the worst might be behind us, and a recovery is in the works. With a vaccine on the way and the possibility of further stimulus, the stock market optimism could carry through the end of the year. The Dow Jones Industrial Average rose by 1.2%, the S&P 500 gained 1.3%, and the NASDAQ gained a whopping 2.6% on the first trading day of December. Tech stocks continued their incredible performance, with Apple and Microsoft both hitting new all-time highs. Small- and mid-cap stocks, which had been lagging behind the big indices, also made headway, suggesting that investor enthusiasm extends beyond just the blue-chip stocks. The strong start to December indicates that the stock market could remain robust in the coming weeks. The market appears to be pricing in an expectation of more stimulus, with both the Democrats and the Republicans making moves towards a new agreement. This could cause a further surge as we move closer to the end of the year, with investors betting on more economic growth in 2021. Additionally, the continued rollout of the coronavirus vaccine should help to restore confidence in the market and help to revive the travel, hospitality, and leisure industries. The positive news led some investors to suggest that the stock market rebound could last well into 2021, though the uncertainty is still high and anything could happen in the near future. That said, the positive news could cause a bout of profit-taking as investors cash in on their profits, so investors should be prepared for some volatility ahead. Despite the positive sentiment surrounding the start of December, investors should remain vigilant and diversify their portfolio to mitigate risk. Overall, the strong start to December is a encouraging sign for the stock market and could be a harbinger of a strong end to the year. With a vaccine and more stimulus on the horizon, investors should be aware of the possibilities that lie ahead. The end of 2020 could be the start of a new and exciting chapter in the stock market.