Earnings are always the big wind behind the market direction, but there are other issues that help add to the narrative. The combination of a finalized election, effective vaccine trials, and positive earnings from various sectors drove equity indices higher in November.
Analysts expect upcoming additions to the S&P 500 Index to produce added volatility with the index, creating demand for customized indexing, also known as direct indexing.
The rise of copper prices to a six-year high is an indication for market analysts that a global economic expansion may be in the making. Copper is a primary metal used worldwide in manufacturing, electronics, buildings, and infrastructure.
The Dow Jones Industrial Index reached the milestone mark of 30,000 in late November, bringing the index to new all-time highs. The S&P 500 Index as well as the Nasdaq also saw higher levels in November, primarily driven by optimism surrounding promising vaccines.
Kent G. Forsey, CFP®
Source: Bloomberg, S&P, Nasdaq, Dow Jones, ©OneBlueWindow, LLC