U.S. stocks jumped on Tuesday with the S&P 500 hitting a new record, as the market’s historic rally extended to December.
The Dow Jones Industrial Average climbed 185.28 points, or 0.6%, to 29,823.92. The 30-stock gauge jumped more than 400 points at its session high to a new intraday record. The S&P 500 rose 1.1%, or 40.82 points, to 3,662.45, marking a fresh record closing high. The tech-heavy Nasdaq Composite gained 1.3%, or 156.37 points, to 12,355.11, also notching a record close.
Apple popped 3.1% to lead the 30-stock Dow higher. Communication services and financials were the best-performing sectors in the S&P 500, rising at least 1.6% each.
Sentiment got a lift after a group of lawmakers unveiled a $908 billion stimulus plan, which includes more than $200 billion in Paycheck Protection Program small business loans. The news gave stocks a boost, and pushed the 10-year Treasury yield above 0.9%. However, Senate Majority Leader Mitch McConnell did not endorse the bipartisan plan, saying he wants to pass a “targeted relief bill” instead.
“Investors have focused … on the potential for a return to normal social and economic activity based on the widespread rollout of effective vaccines in the first half of 2021,” said Mark Haefele, CIO of UBS Global Wealth Management, in a note. “We see further upside for global equities in this environment, but also expect market leadership to continue to shift.”
‘Strong finish for 2020’ ahead
The Dow rallied 11.8% in November, posting its best one-month performance since January 1987. The S&P 500 and Nasdaq Composite rose 10.8% and 11.8%, respectively, for their strongest monthly advances since April. After November’s gain and Tuesday’s pop, the S&P 500 is up 13.8% for 2020.
“December looks like it will be a very strong finish for 2020,” wrote Tom Lee of Fundstrat Global Advisors, who cited data that showed during bull markets when the S&P 500 was up more than 10% through November for the year, it always added to that gain in December.
The data “confirms our view that strong markets finish strong,” said Lee.
Reference: CNBC
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