The stock market is heading into December with a strong start, due to the marked increase in the value of US market indexes at the end of November. The Nasdaq, S&P 500, and Dow Jones Industrial Average (DJIA) have all made significant gains since then, with the S&P 500 gaining 500 points. This means that the stock market is performing well as of the end of November and bodes well for the rest of the year.
The main reason for these gains is the positive development of the US economy, which has been bolstered by the passing of the latest coronavirus relief bill. This was followed by a series of positive reports from the US Federal Reserve (Fed) and news of a potential Coronavirus vaccine. These positive developments have increased investor confidence in the markets and led to gains in the three primary US indexes.
The positive economic news has also come at a time when the US job market has been showing signs of strength. The jobless rate in November fell to 6.7%, its lowest level since the pandemic began. This has been largely attributed to the introduction of enhanced unemployment benefits over the past few months. This has helped to provide financial support to out-of-work Americans and has injected some much-needed stimulus into the US economy.
The positive news from the US economy has been further amplified by a continued reduction in US coronavirus cases and a strengthening of global economies. Although the pandemic is far from over, the attention is now shifting to the roll out the coronavirus vaccine, which could help to open up global economies and restart the stalled global economy.
The positive news from the global economy has been reflected in the gains in the stock market, and it is likely that these gains will continue for the rest of the year. The US economic outlook is brightening as the employment situation stabilizes and the economy begins to open up. In addition, the news of a potential coronavirus vaccine and a reduction in the global coronavirus cases is providing further support for the stock market.
It appears that the stock market is headed into December on a strong note and is likely to remain buoyant for the rest of the year. This is good news for investors who have been cautiously watching the market, as the positive news from the global and US economy suggests the continuation of strong stock market performance in the New Year.
