Wall Street Records its Best Month Since 1987
The New York Stock Exchange ended its last November session down on Monday, catching its breath after record-breaking sessions, which put the flagship Dow Jones index in its best month since 1987.
In Toronto, the S & P / TSX ended the day down 206 points, or 1.19%, to 17,190 points.
The S&P 500 was down 16 points, or 0.46%, to 3,621 points. The index gained 10.8% during the month, a record for a month of November.
The Dow Jones, Wall Street’s flagship index, fell 271 points, 0.91%, to 29,638 points. But it has garnered nearly 12% increase in November alone.
The Nasdaq lost 7 points, or 0.06%, to 12,198 points. Over the month, the Nasdaq also posted gains of almost 12%.
“November lived up to its reputation of ushering in a traditional two-month season of optimism in the markets” at the end of the year, said Sam Stovall of CFRA Research.
“Today was the last session in a November that saw stocks go up in flames,” Schwab analysts commented, adding that “the recent increases were largely driven by optimism around vaccines.”
But on Monday, the clues stalled for the wider market to ignore auspicious new information from Moderna on its COVID-19 vaccine.
The US biotech has announced that it is filing applications for conditional authorizations for its COVID-19 vaccine in the United States and Europe, after comprehensive results confirmed a high estimated efficacy of 94.1%.
If the title of the start-up jumped 20.24% to 152.74 dollars for a title floated on the stock exchange two years ago at 23 dollars, this has hardly caused any contagion of optimism in other sectors of the S&P 500.
Apart from health and information technology, all sectors of the S&P finished in the red.
The energy sector closed sharply down (-5.37%) while OPEC and its ten allies, united within OPEC +, have decided to postpone their discussions around their agreement to reduce production and to resume their virtual summit on Tuesday.
The designer of electric and hydrogen trucks Nikola plunged 26.92% after announcing that after a new agreement with General Motors, the Detroit automaker would ultimately not take a stake in its capital.
The market also digested the $ 44 billion merger-acquisition transaction between the American company S&P Global, which manages the famous S&P 500 and Dow Jones stock market indices, and the IHS Markit group (+ 7.43%), known to publish indices of economic activities very followed by the markets.
In the bond market, the rate on 10-year US Treasuries edged up 0.8438% from 0.8373%. The US central bank (Fed) announced on Monday to extend until March 31, 2021, corporate credit facilities put in place in March to cushion the economic consequences caused by the coronavirus pandemic.