US stock futures rose slightly on Tuesday evening after a banner day for three of the major market benchmarks.
Dow Jones Industrial Average futures traded 52 points, or 0.2%, higher. The S&P 500 futures also rose 0.2% and the Nasdaq 100 futures rose 0.3%.
The Dow broke above 30,000 for the first time on Tuesday, racking up more than 400 points. Tuesday’s rally brought the Dow up to speed for its largest monthly gain since 1987, up more than 13%.
“The 30,000-point Dow is the achievement of an arbitrarily set milestone, but it also captures current investor sentiment,” said Scott Knapp, chief market strategist at CUNA Mutual Group.
Small caps also closed at record highs, with the Russell 2000 gaining nearly 2%. That gain put the Russell up more than 20% in November, which would be his best monthly performance to date. The S&P 500 hit an all-time high on Tuesday, rising 1.6%.
The market’s rally to hit record highs is amid positive vaccine news, coupled with increasing political clarity and heightened market sentiment.
Earlier this week, AstraZeneca said early analysis showed its vaccine candidate had an average effectiveness of 70%. Meanwhile, the Trump administration made federal funds available to President-elect Joe Biden’s team to help him take office. Traders have also welcomed the prospect that former Federal Reserve Chair Janet Yellen might be nominated for Secretary of the Treasury.
Those moves also came as traders continued to pile into rundown value stocks. The iShares Russell 1000 Value ETF (IWD) rose 2.1% on Tuesday and rose more than 15% for the month. Its growth counterpart, the iShares Russell 1000 Growth ETF (IMF), rose 1.1% that day and rose 8.7% in November.
Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance, said the recent increases in value have been “remarkable” because they have come “despite the negative news flow of Covid cases across the country and new lockdowns in different parts of the country”.
The total number of confirmed coronavirus cases in the US is now over 12.4 million, according to Johns Hopkins University.
Nevertheless, “we remain constructive [on the market overall] Given the typical seasonal impact up to the end of the year from now to the end of the year, “added Zaccarelli.
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