Stocks next week: let’s say goodbye to a wild 2020

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No one could have predicted the market chaos of 2020. Shares peaked earlier this year before worries about the coronavirus pandemic – first abroad and then closer to home – pushed US markets into a spiral in February and March. Dow routinely set new records for the worst one-day point declines in history, and the New York Stock Exchange had to suspend trading in the S&P 500 several times because the soldoff triggered the switches.

But in the months that followed, the market recovered – even faster than many had expected. A major factor in growth was the unprecedented action of the US Federal Reserve to stabilize markets and stimulate the economy.

Some of the biggest winners of the year are investors who closed their eyes and muffled their ears during the pandemic sale and held their shares. By the end of the year, their portfolio balances looked pretty good.

“This year has been a year of many reminders for investors: number one, don’t overreact,” Leo Grohowski, chief investment officer at BNY Wealth Management, told CNN Business.

At the same time, many people will look back to 2020 and will be surprised by the performance of the stock market in such unfavorable economic conditions. The disconnect between Wall Street and Main Street will probably be a topic that follows us until the New Year.

America’s economy is never approaching its pre-pandemic force and millions remain unemployed. The US economy is operating at 82% of where it was at the beginning of March, according to the Back-to-Normal index from Moody’s Analytics and CNN Business.

With stimulus measures recently approved by President Donald Trump and more government aid expected next year, there is much to optimize for 2021. President-elect Joe Biden’s plans to get the economy back on track will help markets next year, even if enthusiasm more stimulus could begin to fade, said JJ Kinahan, chief strategist at TD Ameritrade.

These sectors have been the surprise winners of 2020

In a year of widespread and often devastating difficulties, no business or industry has gone through 2020 untouched by the Covid-19 pandemic. But for some key sectors, the news was not bad at all.

Here’s a breakdown of the winner and CNN Business losers together:

Winners

  • Big Tech
  • Housing
  • Solar
  • Bitcoin
  • Big Retail
  • Video games
  • cannabis
  • streaming

wandering

  • Travel and hospitality
  • Oil
  • bed
  • Airlines
  • Commercial centers
  • Car manufacturers
  • manufacturing
  • Movie theaters
See the full CNN Business story for analysis on what’s next for each industry.

It follows

Months: OPEC + meeting

Tuesday: US ISM manufacturing index; Employment data in Germany

Wednesday: Jefferies earnings; Minutes of the Federal Reserve; EIA crude oil inventories

Thursday: Bed Bath & Beyond, Carnival, Conagra, Walgreens Boots Alliance and Micron Earnings; EU inflation; Initial US claims

Friday: US jobs report; Unemployment in the EU

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