By Chuck Mikolajczak
New York (Reuters)-2020 is a wild year for Wall Street, booked by the end of the longest bull market in history, with a stock blow from the COVID-19 shutdown and a bungee code backlash against economic expectations. I did. Recovery that brought about the shortest bear market on record.
Stock prices plummeted for a month after closing record highs on February 19 as a government blockade associated with the coronavirus pandemic caused a panic about damage to the US and global economies.
The S & P 500 plunged 9.5% on March 12 and the largest daily percentage drop since the 1987 “Black Monday” crash confirmed the bear market, dropping the benchmark index by 26.7% from its February highs. did. 20% or more decrease from the high price.
However, the slides only lasted until March 23, when S & P bottomed out. On August 18, a new bull market began, surpassing the February highs. The bear market had 23 trading days, the lowest ever.
(Graphics: 2020 S & P 500-https: //fingfx.thomsonreuters.com/gfx/mkt/nmovaboxypa/Pasted%20image%201609345098052.png)
In addition to the US government’s $ 2 trillion fiscal stimulus to boost the economic downturn, the main reason for the March stock rebound was the Federal Reserve, which announced a series of programs to bring the economy back on March 23. It was a financial stimulus measure by the system. ..
The Fed’s move has kept Treasury yields low, making equities more attractive to investors.
(Graphics: S & P Dividend Yield vs 10 Years Treasury-https: //fingfx.thomsonreuters.com/gfx/mkt/yzdvxjglkvx/Pasted%20image%201609346083754.png)
As stocks continue to recover and vaccine development becomes more promising, investors will see companies that historically outperform as the economy emerges from the recession: small caps, and in the latter energy, materials, industry, finance, etc. Part of this year has begun to turn into the circular sector of.
With the majority of periodic names made up of “value” stocks, the group began to fill the gap with “growth” names, which had long been performing poorly. The value style never completely reestablished control, but the momentum behind the rally-leading technology stocks was enough to leave growth with better performance this year.
(Graphic: 1 year spread between growth and value stocks-https: //fingfx.thomsonreuters.com/gfx/mkt/ygdvzjazavw/Pasted%20image%201609347068175.png)
But even if pushed up at the end of the year, the energy sector performed significantly worse in 2020, further increasing technology and consumer discretion.
(Graphics: S & P 500 Sector Performance in 2020-https: //fingfx.thomsonreuters.com/gfx/mkt/oakvejydwpr/Pasted%20image%201609347743131.png)
Overall, pandemic-related uncertainties and fears have become the most volatile year of the S & P 500 in more than a decade, with the index jumping or falling by more than 2% in more than 40 sessions.
(Graphics: Wall Street Whiplash-https: //graphics.reuters.com/USA-STOCKS/SPX/qmyvmqaqnvr/chart.png)
When it comes to personal equity performance, Tesla (NASDAQ :) jumped to the top when it was added on December 21st. This shows an annual increase of about 700%.
The impact of the coronavirus is clear: stocks benefiting from a “curfew” environment such as the online marketplace Etsy (NASDAQ :) have risen by about 300%, and cruise ship operator Carnival has lost its travel name. I was struck by the brunt. (NYSE :) and the Norwegian cruise were one of the worst performances.
(Graphics: Highest and lowest S & P 500 performer change rate in 2020 https://graphics.reuters.com/USA-STOCKS/YEAREND/nmopabzmqva/chart.png)
According to Refinitiv data, Tesla is by far the most traded, averaging about 7 cents per dollar per day.
(Graphics: Tesla dominated 2020 in Wall Street trading-https: //graphics.reuters.com/USA-STOCKS/TRADING/qmyvmqybjvr/chart.png)
With the rise of low-cost, easy-to-use trading apps, a large amount of individual investor funds have been invested in stocks, marking a new watershed year for stock offerings. According to brokerage Citadel Securities, retail investors accounted for 25% of equity market activity this year, up from 10% of the 2019 market.
(Graphics: Institutional Investors Win Big 2020 IPO-https: //graphics.reuters.com/USA-STOCKS/IPOS/xegpbbebypq/chart.png)
Year of history books on charts by Reuters
https://www.investing.com/news/stock-market-news/us-stocks-in-2020-a-year-for-the-history-books-in-charts-2377945 Year of history books on charts by Reuters