Dow Jones Industrial Average futures were trading 102 points higher, or 0.3%. S&P 500 and Nasdaq 100 futures rose 0.4% and 0.6% respectively.
The Dow Jones rebounded 11.8% in November, posting its best one-month performance since January 1987. The S&P 500 and the Nasdaq Composite rose 10.8% and 11.8%, respectively, to their strongest monthly increases since April.
The November rally came amid a slew of positive news about the coronavirus vaccine, which raised hopes for a strong economic recovery and sparked a surge in defeated value names. The iShares Russell 1000 Value ETF (IWD) rose 13.4% during the month and edged out its growth counterpart, the iShares Russell 1000 Growth ETF (IWF) by 3 percentage points more than percentage points.
At this point, the market “anticipates an even stronger earnings outlook for 2021, possibly tied to a rapid inoculation-induced recovery and continued corporate cost containment, or the S&P 500 could be ahead of it -” even in the short term, especially when you consider the lack of further short term fiscal stimulus and the impact of second wave outbreaks, ”Levkovich said.
Data compiled by Johns Hopkins University shows that more than 13 million cases of Covid-19 have been confirmed in the United States with more than 266,000 deaths. In New York City, Governor Andrew Cuomo said the state was implementing emergency hospital measures as cases continued to rise.
Meanwhile, Federal Reserve Chairman Jerome Powell has called the US economic outlook “extraordinarily uncertain”.
“The increase in new cases of COVID-19, here and abroad, is concerning and could prove difficult for the next few months,” Powell said in prepared remarks. “A full economic recovery is unlikely until people are convinced that it is safe to re-engage in a wide range of activities. ”
Zoom Video shares fell more than 4% in after-hours trading, despite the video conferencing giant reporting better-than-expected earnings for the third quarter. Tesla stock jumped 3.4% after S&P Dow Jones Indices announced that the electric car maker would be added to the S&P 500 on December 21 in a single step.
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