The Dow and Russell 2000 each set a record high early before markets broadly retreated on news that New York City could go into a full lockdown if Covid-19 cases continue to rise.
Bullish tailwinds are coming from a path forward in Washington, the FDA granting Emergency Use Authorization to Pfizer’s vaccine late Friday, and an extension to Brexit talks.
Although we’re upbeat that the market broadly and certainly finds the path of least resistance higher across the board, the move in and of itself has left the Dow and Russell 2000 a step behind.
A slow-developing, yet constant flow of vaccine news continues to lift stocks just as a glimmer of exhaustion may look to set in. Today’s tailwinds have the S&P testing its record high.
U.S. benchmarks have battled through the ‘Covid-19 anti-gathering Thanksgiving narrative’ and are all generally holding within 1% of their respective all-time highs.
Call it a hangover from Friday’s late selling and an early struggle to chew through major three-star resistance, coupled with the U.S. Dollar reversing losses.
