On Monday, benchmark Standard & Poor 500, the league of legends of Wall St.’s corporate tycoons alongside deep-pocket investment funds, had clocked its best November-rally ever, but all key indices of Wall St. had winded down the day broadly lower as investors flocked to fill up their coffers following a sharp rally over the recent weeks, mostly pinned over hopes of a pandemic vaccine in a near-term outlook.
On top of that, despite a sharply slowing US labour market which had largely mirrored a record rise in pandemic cases in the United States and Europe, a basket of upbeat economic data including a sharp upswing in US manufacturing activity last month alongside a record gain in US-borne core capital goods orders, had also helped S&P 500 secure its best November ever.
S&P 500 scores best November-rally ever
If truth is to be told, the day’s decline in all three key indices of Wall St. appeared to have meaded out of a month-end rebalancing of portfolios, as investors seemed to have jumped on the bandwagon of a profit-taking sell-off wave following a month-long rally that was almost entirely prompted by the optimisms of a pandemic vaccine underway alongside hopes of an earlier-than-anticipated economic recovery.
Citing statistics, on the day’s Wall St. closing bell, the trade-sensitive Dow dwindled as much as 0.89 per cent to 29,644.46 and S&P 500 shed 0.45 per cent to 3,621, while tech-heavy Nasdaq inched lower to curtain the day at 12,198.74.
Meanwhile, referring to a record rise in pandemic cases across the United States which had already overwhelmed an unprepared US healthcare system alongside a month-end profit-taking sell-off wave, a CFRA Chief Investment Strategist Sam Stovall said, “I would attribute (Monday’s drop) to compounding concerns over the coronavirus, combined with the market just looking to digest some of the recent gains over the past month. When you sprint and get out of breath, you have to slow down to catch your breath. ”