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U.S. equity futures edged higher on Tuesday night after a record day for three of the market’s major benchmarks.
Dow Jones Industrial Average futures traded up 21 points, or 0.1%. S&P 500 futures were also up 0.1% and Nasdaq 100 futures were up 0.2%.
The Dow Jones broke 30,000 for the first time on Tuesday, scoring over 400 points. Tuesday’s rally put the Dow on pace with its biggest monthly gain since 1987, up more than 13%.
“The Dow 30,000 exceedance represents the achievement of an arbitrarily set milestone, but it also reflects current sentiment for investors,” said Scott Knapp, chief market strategist at CUNA Mutual Group.
Small caps also closed at a record high, with the Russell 2000 surging nearly 2%. The gain pushed the Russell up more than 20% in November, which would be its best monthly performance ever. The S&P 500, meanwhile, posted an all-time high on Tuesday, up 1.6%.
The market’s rally to record highs comes amid positive vaccine news, coupled with increasing political clarity, and increased market sentiment.
Earlier this week, AstraZeneca said an initial analysis showed its vaccine candidate to have an average effectiveness of 70%. Meanwhile, the Trump administration has made federal resources available to President-elect Joe Biden’s team for his transition to power. Traders also praised the prospect of appointing former Federal Reserve Chairman Janet Yellen as Treasury Secretary.
These moves also came as traders continue to cram into battered value stocks. The iShares Russell 1000 Value ETF (IWD) rose 2.1% on Tuesday and more than 15% for the month. Its growth counterpart, the iShares Russell 1000 Growth ETF (IWF), climbed 1.1% for the day and rose 8.7% in November.
Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance, said the gains in value were recently “notable” because they are occurring “despite the flood of negative news of the Covid cases sweeping the country and lockdowns in the country. again imposed in various parts of the country “.
The total number of confirmed coronavirus cases in the United States now exceeds 12.4 million, according to data from Johns Hopkins University.
Yet “we remain constructive [on the market overall] by the end of the year, given the typical seasonal effects at the end of the year, ”Zaccarelli added.
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