U.S. stocks rose on Friday as investors bet again on stocks that would benefit from a potentially effective vaccine and economic recovery next year.
The S&P 500 advanced 1.4% to 3,585.15, and posted a record closing high. The Dow Jones Industrial Average jumped 399.64 points, or 1.4%, to close at 29,479.81. The Nasdaq Composite advanced 1% to 11,829.29. The Russell 2000, which tracks small-cap stocks, jumped more than 2% to an intraday record, and posted its first all-time closing high since August 2018.
Shares of cruise operator Carnival rose more than 7%. United Airlines and Boeing were both up more than 5%. Disney closed 2.1% higher on the back of better-than-expected quarterly numbers. At the sector level, energy and industrials rose 3.8% and 2.2%, respectively, to lead the S&P 500 higher. Financials were up more than 1%.
Both the Dow and S&P 500 logged strong weekly gains, boosted by Pfizer’s news on Monday that the vaccine it is developing with BioNTech was more than 90% effective in a trial. This caused a rotation into the cyclical stocks that would benefit from an economic comeback next year. Investors dumped technology shares which have held up during the pandemic.
The Dow rose 4.1% for the week, and the S&P 500 closed 2.16% higher over that time period. The tech-heavy Nasdaq lost 0.6% this week, notching its third weekly loss in four weeks.
Before Friday’s rally, the rotation paused midweek as traders worried that a rising number of coronavirus cases could hit the economy significantly before a vaccine gets here.
Dow futures rise 200 points after last week’s big market rotation
U.S. stock futures rose on Sunday night as traders assessed a sharp market rotation that led to a mixed weekly performance last week.
Dow Jones Industrial Average futures were up by 202 points, or 0.7%. S&P 500 futures traded 0.7% higher and Nasdaq 100 futures advanced 0.9%.
Reference: CNBC
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