Dow posts best monthly gain since 1987 on continued vaccine optimism
- US stocks declined on Monday. But the
Dow Jones industrial average's 11.8% rise in November represented its best monthly gain since January 1987.
- Investor optimism about a COVID-19 vaccine continued on Monday after Moderna said it would file for emergency use authorization from the Food and Drug Administration for its vaccine.
- In November, Pfizer, Moderna, and AstraZeneca reported vaccine efficacy data well above the 50% threshold set by the FDA.
- Watch major indexes update live here.
The Dow finished the month having climbed by 11.8%, ahead of April's strong 11.1% gain but below the 13.8% monthly gain in January 1987.
November's strong rally was mostly driven by continued optimism about a COVID-19 vaccine, as Moderna, Pfizer, and AstraZeneca reported efficacy rates that surpassed the Food and Drug Administration's threshold of 50%.
On Monday, Moderna said it would submit data from its phase-three trial to the FDA to be considered for an emergency use authorization. Investors remain optimistic that a successful COVID-19 vaccine will help jump-start a swift economic reopening in 2021.
Here's where US indexes stood at the 4 p.m. ET close on Monday:
- S&P 500: 3,621.63, down 0.5%
- Dow Jones industrial average: 29,638.64, down 0.9% (272 points)
- Nasdaq composite: 12,198.74, down 0.1%
Nikola plunged as much as 28% after it announced a revised deal with General Motors that failed to include an equity investment from GM and a commitment to develop and manufacture Nikola's Badger pickup truck. But JPMorgan defended Nikola and called the decline a good buying opportunity.
S&P Global said it would acquire IHS Markit in an all-stock deal worth $44 billion. IHS Markit traded up as much as 7% as investors cheered a merger of two data providers.
DoorDash and Airbnb remain on the path to go public by the end of this year, as they both seek increased valuation debuts in a surging stock market. A filing on Monday said DoorDash was aiming for a valuation of up to $27 billion, with proceeds of roughly $2.8 billion.
Read more: Cheap stocks just had their best month ever. A Wall Street expert breaks down why their outperformance is bound to continue over the next 4 to 5 years — and listed 2 bargain stocks to buy to capitalize on the trend.
Pending home sales fell in the US for the second straight month as a continued surge in home prices dented housing
Gold declined as much as 1.3%, to $1,764.80 per ounce.
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