- Moving the markets
An early rally got cut down, especially in the Dow, but the major indexes managed to eke out solid gains to start the December by continuing the bullish theme of November. The S&P 500 and Nasdaq scored new record closing highs, but the Dow was not able to remain above its 30k level.
The US Dollar got slammed, which for a change helped gold to stage a rebound back above its recently lost $1,800 level. The victim from the dollar dump were bonds, which slipped as yields spiked severely with the 20-year ETF TLT losing -1.61%.
Market sentiment got a boost after the unveiling of a $908 billion stimulus plan, which assisted stocks early on and propelled the 10-year Treasury yield above 0.9%. However, all the hype evaporated, as the lawmakers engaged in their tug-of-war without any agreement, thereby continuing the stalemate.
Hope that the rally has legs and will last through the end of the year flourishes:
“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.
Only time will tell if history repeats itself.Read More