It is unequivocally true that 2020 has been a tumultuous year. Despite all the shifts and changes undergone, however, the stock market has been surprisingly resilient. The resiliency of the stock market is largely contingent on the technology sector. This isn’t to say that other sectors aren’t contributing though.
According to Tim Ghriskey, chief investment strategist at Inverness Counsel in New York “every sector is participating in this rally.”
Despite the rallying and the jump on Monday, another explanation for the jump could be redistribution. “Given that it’s been a weak month, some rebalancing may be occurring,” Ghriskey added. “The rebalancing would move allocations to equities and some of that may be happening today.”
Technology continues to be the sector generating the biggest boost for financial measurements of stock such as the S&P 500 and NASDAQ. These tech firms include Apple Inc and Amazon.com.
Advancing issues outnumbered declining ones on the NYSE by a 5.27-to-1 ratio; on Nasdaq, a 3.25-to-1 ratio favored advancers. The S&P 500 posted 6 new 52-week highs and no new lows; the Nasdaq Composite recorded 49 new highs and 35 new lows. Volume on U.S. exchanges was 8.74 billion shares, compared with the 10.05 billion average over the last 20 trading days.”
Moreover, over companies contributing significantly to the stock market include Devon Energy Corp, Boeing, American Airlines, and Uber.