Each Of The Major Indices Rose More Than 2.0% This Shortened Week And Set New Record Highs, Including The Dow Jones Industrial Average (+2.2%), Which Crossed Above 30,000 For The First Time Ever. The Russell 2000 Rose 3.9%, The Nasdaq Composite Rose 3.0%, And The S&P 500 Rose 2.3%.
Value, cyclical, and small‐cap stocks retained their leadership roles in this part of the bull market. The S&P 500 energy sector rose 8.5%, and the financials sector rose 4.6%. Every other sector, except real estate (‐0.4%), ended the week with gains.
Positive catalysts included news that Joe Biden will nominate former Fed Chair Janet Yellen as Treasury Secretary, the General Services Administration saying it will release funds to help the Biden administration transition into office, and more upbeat vaccine/treatment updates for COVID‐19.
Regarding the latter, AstraZeneca (AZN) and the University of Oxford said their vaccine has an efficacy rate of up to 90%, and Regeneron Pharma (REGN) said it received emergency use authorization from the FDA for its antibody cocktail. Note, AstraZeneca acknowledged at the end of the week that it made a dosage mistake in its trials, likely prolonging federal approval in the U.S.
The bullish price action continued to feed on itself, contributing to a fear of missing out on further gains and parabolic moves in some parts of the market. Tesla (TSLA) surged 20% this week, and Palantir (PLTR) surged 52%.
The 10‐yr yield Treasury note yield edged higher by two basis points to 0.85% ahead of the bond market close on Friday.