(Bloomberg) -- U.S. stocks started December by rising to record highs as a renewal of aid talks added to optimism over progress on coronavirus vaccines. The dollar extended its slide to a more than two-year low and Treasury yields jumped.The risk-on mood powered the S&P 500 and Nasdaq Composite to all-time highs a day after posting double-digit gains last month. Traders continued to bet vaccine news will lead to an economic surge next year. There were also signs that appetite is picking up for a federal spending plan. President-elect Joe Biden urged Congress to pass a relief package.Communication services, financial and information technology were the biggest S&P industry sector gainers. House Speaker Nancy Pelosi delivered a new proposal for a stimulus package and Senate Majority Leader Mitch McConnell said Tuesday he is circulating among Republicans his own revised plan, which has the backing of President Donald Trump.“Investors have been prepared to look beyond the near-term continued rise in Covid-19 cases in many regions,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “They have focused instead on the potential for a return to normal social and economic activity based on the widespread roll out of effective vaccines in the first half of 2021. We see further upside for global equities in this environment, but also expect market leadership to continue to shift.”After a record month for global stocks, there’s no end in sight for the rally that’s been fueled by vaccine breakthroughs. Pfizer Inc. and partner BioNTech SE have sought regulatory clearance for their Covid-19 vaccine in the European Union and BioNTech said it could start shipping the first doses “within hours” after approval.“People have faith that even though things are very uncertain around the virus in the short term, if they look out six months or a year, it’s credible things will be better,” said Alec Young, chief investment officer at Tactical Alpha LLC.Strong economic data from Asia also added support to the positive mood in markets. Indexes of factory activity in some of North Asia’s biggest export-led economies rebounded in November and China’s recovery continues to lift the region.It’s not all good news though. Federal Reserve Chairman Jerome Powell cautioned lawmakers that the U.S. economy remains in a damaged and uncertain state during testimony at a Tuesday hearing before the Senate Banking Committee.In other markets, gold advanced. Oil fell as OPEC+ sought more time to reach a deal on production policy.Bitcoin pulled back after almost reaching $20,000 for the first time.These are some key events coming up:Fed’s Powell testifies before Congress again on Wednesday.The U.S. employment report on Friday is expected to show more Americans headed back to work in November, though at a slower pace than October.Here are some of the main moves in markets:For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Activity in China’s factory sector accelerated at the fastest pace in a decade in November, a business surveyed showed on Tuesday.
(Bloomberg) -- U.S. stocks fell from records as investors assessed the prospects for risk assets after a blistering month long rally. The dollar strengthened.The S&P 500 dropped the most in more than a week, though the benchmark index still registered its best month since April. Global stocks and American small caps posted their best months on record. Broad selling sent the Dow Jones Industrial Average lower. The tech-heavy Nasdaq indexes that trailed in November fared better, briefly touching another record high on Monday. Gold slumped and Bitcoin rallied back to an all-time high.“The market may be getting tired from its very strong November and simultaneous all time highs (DJIA, S&P and Russell 2K), which could push the benchmarks into a traditional mid-December low,” said Sam Stovall, chief investment strategist at CFRA Research.Value Rotation Gives Europe a $1.7 Trillion Boost: Taking StockThe rapid pace to a coronavirus vaccine has given investors the confidence to price in a return to normalcy and faster economic growth, helping lift shares of companies that were hardest hit by the pandemic.Over the weekend, U.S. Surgeon General Jerome Adams said the federal government hopes to quickly review and approve requests from two drugmakers for emergency approval of their Covid-19 vaccines.“November has been such an unbelievable move up,” said Andrew Mies, chief investment officer of 6 Meridian. “All that is being driven by the vaccine.”Shares of Moderna Inc. surged 20% on Monday after the company said it plans to request clearance for its coronavirus vaccine in the U.S. and Europe.The MSCI World Index soared 13% in November, the best performance on record.The risk-on mood across markets has hurt demand for haven assets. Gold posted its largest monthly decline in four years. Even after gaining on Monday, the dollar slumped 2.4% in November.Oil edged lower in New York. OPEC+ began two days of potentially complicated talks to hash out the size of its oil-production cuts next year, with the group’s president calling for caution in a fragile market.Elsewhere, the MSCI Asia Pacific Index sank 1.6% on Monday, the biggest loss in a month.Bitcoin took less than three years to replicate the euphoric ascent that catapulted the cryptocurrency into the mainstream consciousness. The world’s largest digital-asset gained as much as 8.7% to $19,351, according to data compiled by Bloomberg. It traded at a few cents for several years after its late 2008 launch by an unknown software developer in the wake of the global financial crash.These are some key events coming up:The Reserve Bank of Australia holds a policy meeting on Tuesday.Federal Reserve Chairman Jerome Powell testifies before Congress on Tuesday and Wednesday.The U.S. employment report on Friday is expected to show more Americans headed back to work in November, though at a slower pace than last month.Here are some of the main moves in markets:For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.