Construction Projects

Stock Markets Look Beyond Pandemic to Set Record Highs

The U.S. economy may have been battered by the full-on return of the coronavirus contagion in 2020’s fourth quarter, but the nation’s principal stock markets were unfazed. The DJI, S&P 500, and NASDAQ all set new highs in December.

Compared with their low points in late March of last year, NASDAQ ended 2020 up by nearly double (+94.4%), the DJI and S&P 500 were ahead by between two-thirds and three-quarters (+68.0% and +71.4% respectively) and the TSX climbed by slightly more than half (+56%).

The Russell 2000 index, comprised of small cap companies, also performed well, +18.4% year over year and an outstanding +8.5% in December alone.

The improvements in the indices continued to be fueled by high-tech companies, which are now said to make up 40% of the S&P 500’s total market valuation.

Among the FAAMG group of companies, Apple was the leader at +83.8% year over year (i.e., Dec 31 2020 vs Dec 31 2019). Next in line were Amazon, +76.3%; Microsoft, +42.5%; Facebook, +33.1%; and Alphabet, +30.9%. Concerning that last figure of +30.9%, the ‘least’ of the FAAMG companies still managed an equity appreciation of nearly one-third.

Most stunning of all, though, was the year-end closing value of Tesla’s stock, +743.4% relative to where it started the year.   

Table 1: Stock exchanges – performances of key indices – December 31, 2020

Stock exchanges - performances of key indices - December 31, 2020 Table

 

Sources: New York Stock Exchange (NYSE), Standard and Poor’s (S & P), National Association of
Securities Dealers Automated Quotations (NASDAQ), Toronto Stock Exchange (TSE) and Reuters.
Table: ConstructConnect.

Graph 1: U.S. Stock Markets − December 31, 2020 Closings

U.S. Stock Markets − December 31, 2020 Closings Chart

Red vertical lines denote Feb 2009 major ‘troughs’ for the indices.
Latest data points are for Dec. 31, 2020.

Data sources: New York Stock Exchange (NYSE), Standard and Poor’s (S & P), National Association of
Securities Dealers Automated Quotations (NASDAQ), Reuters & Yahoo.
Chart: ConstructConnect.

Graph 2: Latest 52-Week Performances of FAAMG (Big Tech) Stocks
(Each day’s closing value compared with Dec. 31, 2019 (i.e., year-before) value

Latest 52-Week Performances of FAAMG (Big Tech) Stocks<br />
(Each day's closing value compared with Dec. 31, 2019 (i.e., year-before)  value   Chart

Data Sources: NYSE, Standard & Poor’s, NASDAQ, Reuters & Yahoo.
Chart: ConstructConnect.

Graph 3: Performances of key stock market indices during last year

Performances of key stock market indices since most recent trough Chart

Data sources: New York Stock Exchange (NYSE), Standard and Poor’s (S & P), National Association of
Securities Dealers Automated Quotations (NASDAQ), Toronto Stock Exchange (TSE) and Reuters.

Graph 4: Performances of key stock market indices since 2008-09 troughs

Performances of key stock market indices since most recent trough Chart

Data sources: New York Stock Exchange (NYSE), Standard and Poor’s (S & P), National Association of
Securities Dealers Automated Quotations (NASDAQ), Toronto Stock Exchange (TSE) and Reuters.

Table 2: Key Domestic & International Stock Market Indices – December 31, 2020

Key Domestic & International Stock Market Indices Chart

‘”Ticker symbols” are in brackets. MSCI (formerly Morgan Stanley Capital International) is a leading provider of investment decision support tools, with indices as one specialty. “iShares” is a web site that specializes in “exchange traded funds”, or ETFs, managed by BlackRock Investments LLC.

Data Source: ‘finance.yahoo.com’
Table: ConstructConnect.

Graph 5: Stock Market Performances: U.S. & Canada vs Rest of World
Year over Year as of Month-end Closings, December 31, 2020

Stock Market Performances: U.S. & Canada vs Rest of World Year over Year as of Month-end Closings, December 31, 2020 Chart

iShares is a web site that specializes in “exchange traded funds”, or ETFs, managed by BlackRock Investments LLC.

Data Source: ‘finance.yahoo.com’
Table: ConstructConnect.

Graph 6: New York Stock Exchange: Dow-Jones Industrials (30)

New York Stock Exchange: Dow-Jones Industrials (30) Chart

Areas of gray shading denote century’s 2 prior recessions (‘dot.com’ collapse in 2001 & Great Recession Q1 08 to Q2 09). The chart shows month-end closing figures. The latest data point is for December 31, 2020.

Data sources: New York Stock Exchange (NYSE), Standard and Poor’s (S & P), National Association of
Securities Dealers Automated Quotations (NASDAQ), Toronto Stock Exchange (TSE) and Reuters.
Chart: ConstructConnect.

Graph 7: New York Stock Exchange: Standard and Poor’s (500)

New York Stock Exchange: Standard and Poor's (500) Chart

Areas of gray shading denote century’s 2 prior recessions (‘dot.com’ collapse in 2001 & Great Recession Q1 08 to Q2 09). The chart shows month-end closing figures. The latest data point is for December 31, 2020.

Data sources: New York Stock Exchange (NYSE), Standard and Poor’s (S & P), National Association of
Securities Dealers Automated Quotations (NASDAQ), Toronto Stock Exchange (TSE) and Reuters.
Chart: ConstructConnect.

Graph 8: NASDAQ Composite Index

NASDAQ Composite Index Chart

Areas of gray shading denote century’s 2 prior recessions (‘dot.com’ collapse in 2001 & Great Recession Q1 08 to Q2 09). The chart shows month-end closing figures. The latest data point is for December 31, 2020.

Data sources: New York Stock Exchange (NYSE), Standard and Poor’s (S & P), National Association of
Securities Dealers Automated Quotations (NASDAQ), Toronto Stock Exchange (TSE) and Reuters.
Chart: ConstructConnect.

Graph 9: S&P/TSX Composite Index: Toronto Stock Exchange

NASDAQ Composite Index Chart

Area of gray shading denotes Canada’s earlier recession in current century (Q4 2008 to Q2 2009; no ‘dot.com’ collapse). The chart shows month-end closing figures. The latest data point is for December 31, 2020.

Data sources: New York Stock Exchange (NYSE), Standard and Poor’s (S & P), National Association of
Securities Dealers Automated Quotations (NASDAQ), Toronto Stock Exchange (TSE) and Reuters.
Chart: ConstructConnect.


Subscribe to ConstructConnect's Economic Reports

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *