With traders expressing optimism as impending government aid is expected to fuel economic growth, U.S. stocks have been edging ever closer to record high figures. This positive reaction has offset the initial uncertainty surrounding the speed with which vaccines can be expected to be distributed.
The S&P 500 index is expected to finish up the year at more than 15% higher, while the Nasdaq Composite’s gains have exceeded 40%. Fundstrat Global Advisors co-founder and research head Tom Lee explained that such gains can be expected from strong markets: “We see positive risk/reward for equities into YE and with strong follow-through continuing through much of next year’s first quarter.”
In the S&P 500 index, health companies proved to be among the top performers. Risk assets such as Bitcoin, corporate bonds, and stocks have also reached record highs this year, despite the ongoing threat posed by the coronavirus pandemic.
Markets that are overseas are also expecting to end 2020 strongly. The Brexit trade deal made on Christmas Eve between the United Kingdom and the European Union helped to bolster European stock markets, with the FTSE 100 Index making a significant 2% climb.
