U.S stocks posted a second week of gains

U.S stocks posted a second week of gains following news of progress in developing a COVID-19 vaccine. The S&P 500 closed at a new record high, while Dow Jones Industrial Average and the smaller-cap benchmarks performed best.
On the contrary, technology-heavy Nasdaq Composite Index lagged. The increases were broad-based, but energy and financial shares rose the most within the S&P 500.
Technology, materials, and real estate underperformed.

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Last week, we experienced a rotation of styles, as cyclical sectors that have been adversely impacted by the pandemic and are more sensitive to the reopening of the economy outperformed last week, while sectors that have benefited from the pandemic underperformed. A similar rotation occurred across asset classes, with small-cap and international stocks outpacing U.S. large-caps.
There was also evident a rare momentum crash, with past losers outperforming past winners.

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European stocks surged for the week, allied with global markets on positive news regarding the development of a vaccine to tackle the coronavirus, although surging coronavirus infections and lockdowns in key European
economies topped gains. The pan-European STOXX Europe 600 Index ended 5.13% higher, with major indexes also posting solid gains. Germany’s DAX Index rose 4.78%, France’s CAC-40 Index climbed 7.45%, and Italy’s FTSE MIB Index advanced 6.21%.

The UK’s FTSE 100 Index also posted strong gains of 6.88%. Travel & leisure, and bank stocks outperformed last week. Rolls-Royce, Carnival, and British Airways owner IAG rank among the top performers of last week’s rally, while bank stock risers include Société Générale, Barclays, and Lloyds, all up between 10% and 25%. According to data provider ORTEX Analytics, shortsellers in European travel, leisure and bank stocks alone suffer the loss of more than $500 million on Monday.

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