Wall Street he has fired a 2020 fraught with turbulence, but marked by their records against the current the heavy setbacks suffered in a large group of stock markets worldwide. Rates new yorkers have finished the year in the area of historical highs, immune to the pandemic of the coronavirus to the beat of monetary stimulus, fiscal and economic.
Never before in the history the three major us indices had quoted so high. And in unison. Although the progress accumulated throughout the year have been neither much less uniform, that have been enough -against all odds – to put the 2020 as one of the exercises most brilliant in the history of Wall Street.
While it is true that the american economy has been one of the that less has suffered from the pandemic, despite the fact that the numbers of infections and deaths continue to be firedthe rapid reaction of the authorities and economic policies has set the bases of this bullish price behavior unambiguously. The stimuli have come to time and with sufficient force, by now, even in the middle of the pulse between the republican president outgoing Donald Trump and the democrat-elect Joe Biden.
The technological Nasdaq 100 has put the singer voice with a revaluation of nothing less than the 47% since the beginning of the year, its second best record in the last two decades. In the crosses higher this year, this same week, the rate was struck for the first time in its history 12.900 points.
This dizzying ascent has its origin precisely in the pandemic this year has ravaged the world. The change of habits that have been forced confinement, social distancing measures and the rise of telework have become the great allies of the heavy weights of the Nasdaq.
Hikes in triple-digit
Despite the fact that at the start of the year, many analysts warned of a possible overvaluation of FAANG -and the technology sector in general, the increase of business and the concentration of the money investor has gained even more capitalization. And now point out that, unlike what occurred during the bubble of the dotcom, the market has become more selective at the time of reward values.
Serve as a good example of the strong revaluations that have reached the e-commerce platforms Mercadolibre (+200%) and JD.com (+155%), the firm’s cyber security DocuSign (+204%) or the company of digital devices for the practice of sports Platoon Interactive (+445%).
Among the 100 values that are part of the index, a dozen have more than doubled its stock market value in this year full of jolts. Many companies that 12 months ago were practices unknown to the ordinary investors have become flag-bearers of this comeback.
A special mention deserve in this block are two good examples of this circumstance. Of a part, Zoom Video Communications (+420%), the great revelation of the work and the meetings in remote. Of another, Modern (+470%), one of the winners in the search for an effective vaccine against the Covid-19 that is already prepared to start to distribute its antigen on a global scale.
The unstoppable Tesla
However, the great protagonist of the rise in the technology index has been Tesla. The manufacturer of electric vehicles founded by Elon Musk, has broken all of the odds having multiplied by eight its capitalizationthat already exceeds 670.000 millions of dollars.
A rise of 730% since the start that has been fueled by its long-awaited entry into the S&P 500 and a splitting of actions that was intended to make more accessible the price per title to investors with more modest and foster their liquidity. And what has been achieved, as the entry of money investor fresh has raised its capitalization from 500 to over 700 dollars.
Apple leads the Dow Jones
A much more modest 6.5 per cent has been added the Dow Jones. A dimension which, however, has been more than sufficient for the industrial index in Wall Street has been looking out for the first time at 30.500 points and you have managed to close very close to them.
At the forefront of advances in this index, Applewith a revalización of 82% in a year that has again made history by become the first listed company with a valuation higher than $ 2 trillion. And is that the company manufacturer of the iPhone has also been the protagonist of another unfolding of actions matching in the calendar with the Tesla.
As a result of this transaction, the Dow Jones has undergone interior remodeling deepest of the past seven years. A rollover that ended with the output of the oil company Exxon Mobil (-40%), despite the fact that he had been a member of the index since its establishment in 1928.
Among the first positions of this index, Microsoft and Nikealmost tied with the revaluation of the 40%. Very top have also been two other listed companies benefit from the ‘stay at home’. The supermarket chain Walmart (+21%) and retailer specializing in diy Home Depot (+22%). At the other end, the aeronautical Boeing (-33%), that the general situation of the sector has had to add the security problems of its model 737 MAX, and the oil Chevron (-29%).
The ‘index of fear’
To horse between the two indices already mentioned, the S&P 500. The aggregate u.s. have been joined by a revaluation of 15% in this 2020. An impulse which has led you to mark their own historic peaks above 3,700 points.
In any case, this increase has not been a road free of jolts. Good proof of this is given in the VIX, which measures the volatility of this indicator and is also known as the ‘index of fear’. Your graph also has pointed to this year’s highs in the 78,82 points. A level was full wave of panic investor in march, when the US Federal reserve (Fed) knew how to be agile.
Fed to the rescue
The agency led by Jerome Powell, against which so much criticism poured the same Donald Trump who has been a loser in the presidential elections that took place on December 3 in the US, gave a clear knock on effect the cut dramatically and by surprise its reference rate of interest.
That was only the first step of a Fed that has not skimped on display tools to keep the pace of the u.s. economy. A task that is especially complicated at a time when China, which has managed to put the brakes on the Covid-19 that came out of Wuhan, cut distances by the leadership of the world economy.
Beyond that, the agency monetary has lengthened the horizon for interest rates at historic lows until 2023, the most decisive came in August in Jackson Hole. And is that the institution announced in the expected symposium that his roadmap was changing radically by introducing the concept of “average inflation”, which will temporarily allow markups of the shopping basket is higher than 2%.
The end of the year of the coronavirus has coincided in the US with the arrival of the first checks of subsidies of urgency households with more financial difficulties. A lifeguard that has been possible thanks to the approval of the new round of grants of 900,000 million dollars just a few days ago after months of tug-of-war in the Congress of the country.
This new year’s Eve has been known that 5,22 millions of americans have turned to request weekly benefits to unemployment. Receive them in a timely manner. This pumping of stimuli is the factor that, according to experts, has been key to immunize the world’s largest market the largest epidemic of the last century.