U.S. stock market futures rose Tuesday night after the flag day of three of the most important market benchmarks.
Dow Jones Industrial Average futures rose 150 points, 0.6%. S&P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.7%.
The Dow reached over 30,000 for the first time on Tuesday, collecting more than 400 points. Tuesday’s General Assembly moved the Dow at a rapid pace, the highest monthly increase since 1987, at more than 13%.
“Exceeding the Dow’s 30,000 means reaching an arbitrarily set milestone, while also capturing the mood of the moment for investors,” said Scott Knapp, chief market strategist at CUNA Mutual Group.
The small caps also closed at record heights, with Russell 2000 up nearly 2%. That gain raised more than 20% for Russell by November, the best monthly performance to date. The S&P 500, meanwhile, hit an all-time high on Tuesday, rising 1.6%.
The record-breaking rally of the market is coupled with positive vaccine news, increasing political clarity and increasing market sentiment.
Earlier this week, an early analysis by AstraZeneca showed that the average effectiveness of a vaccine candidate was 70%. Meanwhile, the Trump administration has provided federal funds to President Joe Biden’s team to take office. Traders were pleased with the prospect of potentially appointing former Federal Reserve President Janet Yellen to the Treasury Secretariat.
These steps also occurred when traders continued to be loaded into accumulated securities. The iShares Russell 1000 Value ETF (IWD) rose 2.1% on Tuesday to exceed 15% for the month. Its growth counterpart, the iShares Russell 1000 Growth ETF (IWF), rose 1.1% for the day and advanced 8.7% in November.
Chris Zaccarelli, chief investment officer of the Independent Advisory Association, said the increase in value had recently been “remarkable” because “despite negative news flows over Covid affairs swinging across the country and re-ordering locks in different parts of the nation.”
According to Johns Hopkins University, the number of confirmed cases of coronavirus in the United States currently exceeds 12.4 million.
Nevertheless, “we remain constructive [on the market overall] from now until the end of the year, given the seasonal effects at the end of the year, “Zaccarelli added.
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