U.S. stocks slid on Monday but still delivered a record-breaking November marked by major developments on the political, economic and coronavirus fronts.
The Dow Jones industrial average gave up nearly 270 points, or .89 percent, by market close, but nonetheless bagged its best monthly performance since 1987. The S&P 500 slipped 16 points, nearly 0.5 percent, to close up more than 11 percent for the month, its best November since 1928. The tech-heavy Nasdaq gave up just a few points, slipping .06 percent.
Markets rallied after news outlets projected Democrat Joe Biden to be the winner of the Nov. 3 election, with investors largely looking past President Trump’s unfounded claims of voter fraud and refusal to concede. Then came several promising announcements showing the effectiveness of multiple experimental vaccines, despite the resurgence of U.S. cases and fatalities. Last week’s formal launch of the White House transition lifted Wall Street’s optimism further, notching double-digit growth and cementing November’s broad-based rally as one of the best performances in more than 90 years.
The Dow, which last week surpassed 30,000 for the first time, gained 12 percent this month. Analysts are encouraged by the makeup of the rally, which has broadened beyond the giant technology companies that fueled much of Wall Street’s comeback in the summer.
“Industrials and value names have started to climb this year as the market strength continued to broaden in the month of November,” said Michael Farr, president of Farr, Miller & Washington.
Other sectors are also driving the gains, as are smaller companies — another upbeat indicator for the country’s economic prospects. The Russell 2000 index, comprising small-cap stocks, has surged more than 20 percent this month, which would mark the biggest monthly gain since the index began tracking its companies in 1984.