Stocks Upcoming Week: Say Goodbye To A Wild 2020

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No one could have predicted the stock market chaos of 2020. Stocks hit record highs earlier this year, before concerns about the coronavirus pandemic – first abroad and then closer to home – broke push US markets into a spiral in February and March. The Dow has steadily set new records for the worst day-to-day lows in history, and the New York Stock Exchange has had to halt trading on the S&P 500 several times as the sell trip tripped circuit breakers.

But in the months that followed, the market recovered – and faster than many expected. A major driver of the push has been the unprecedented move by the US Federal Reserve to stabilize markets and stimulate the economy.

Some of the biggest winners of the year are investors who turned a blind eye and choked their ears on the pandemic sale and held onto their shares. At the end of the year, their portfolio balances looked pretty good.

“This year has been a year with a lot of reminders for investors: number one, don’t overreact,” Leo Grohowski, chief investment officer at BNY Wealth Management, told CNN Business.

At the same time, many people will look at 2020 and be surprised at the performance of the stock market under such adverse economic conditions. The disconnect between Wall Street and Main Street will probably be a topic that will follow us into the new year.

The US economy is far from regaining its pre-pandemic strength and millions of people remain unemployed. The US economy is operating at 82% of its level at the beginning of March, according to the Back-to-Normal index of Moody’s Analytics and CNN Business.

With the stimulus measures recently approved by President Donald Trump and additional government assistance expected next year, there is cause for optimism for 2021. President-elect Joe Biden’s plans to get the economy back on track will help markets next year, although the craze for more stimulus may start to wane, said JJ Kinahan, chief strategist at TD Ameritrade.

These sectors were the surprise winners of 2020

In a year of widespread and often devastating difficulties, no business or industry in 2020 has managed to be immune from the Covid-19 pandemic. But for some key sectors, the news was not all bad.

Here is a list of CNN Business winners and losers:

Winners

  • Great technology
  • Housing
  • Solar
  • Bitcoin
  • Large retail
  • Video games
  • Cannabis
  • Diffusion

Losers

  • Travel and hospitality
  • Oil
  • Banks
  • Airlines companies
  • Shopping centers
  • Car manufacturers
  • Manufacturing
  • Cinemas
Check out the full story on CNN Business for an analysis of what’s to come for each industry.

next

On Monday: OPEC + meeting

Tuesday: ISM American manufacturing index; Data on employment in Germany

Wednesday: The profits of Jefferies; The minutes of the Federal Reserve; EIA crude oil inventories

Thursday: Bed Bath & Beyond, Carnival, Conagra, Walgreens Boots Alliance and Micron Benefits; Inflation in the EU; US initial claims

Friday: United States Employment Report; Unemployment in the EU

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