The Stock Market Recovery is Finally Starting to Broaden
November 30, 2020
There has been some concern over how narrowly concentrated the post-pandemic stock market recovery has been. The biggest gains have largely been concentrated to specific dominant companies, like Amazon and Microsoft, and sectors like technology. Luckily, in November, the rally looks to be widening.
The Wall Street Journal reports that November has seen gains in 464 of the stocks listed on the S&P 500, the most since the rebound began in April. For comparison’s sake, October saw gains in 212 stocks, while September saw just 153.
Analysts take the broadening rally as a sign that the market’s confidence in the economic recovery is growing. Despite growing numbers of coronavirus cases, consumer spending and manufacturing activity continue to grow, and the announcement of effective vaccines has raised hopes that hard-hit industries like travel and hospitality may see a strong bounce back in 2021.