_{Weekly Market Commentary December 14, 2020}

When it comes to beverages, frothy can be delicious.

When is bad news good news? Take a look at last week.

Major stock indices in the United States hit all-time highs on Friday, despite a lackluster employment report and a surge in COVID-19 cases, reported Lewis Krauskopf of Reuters. During the week, we saw:

Last week, vaccine optimism immunized investors against signs of economic weakness.

Last week, the third quarter of 2020 came to an end – and the fourth quarter delivered a doozy of an October surprise.

President Trump has the coronavirus

Investors weren’t happy with central banks last week.

After the Federal Open Market Committee (FOMC) meeting, Federal Reserve Chair Jerome Powell confirmed the economy is recovering more quickly than anticipated:

Last week, the Nasdaq Composite Index set another record.

So far, 2020 has been memorable for many reasons, not the least of which is the incredible speed at which some events have been occurring in financial markets. This year, we’ve experienced:

The stock markets in the United States retreated a bit last week.

U.S. stocks have been trending higher for months. Last week, they gave back some gains. The Nasdaq Composite dropped 3.3%, while the S&P 500 Index fell 2.3%, and the Dow lost 1.8%, reported Ben Levisohn of Barron’s.

The stock market rallies like it’s 1986

August has been a good month for stock investors. At the end of last week, the S&P 500 Index was up 6.8% for the month. The Index is poised to deliver its best returns for the month since 1986, when it gained 7.1%, reported Financial Times.

The shortest bear market in history?

The Nasdaq Composite and Standard & Poor’s 500 Indices finished at new highs last week. The stock market is considered to be a leading economic indicator, so strong stock market performance suggests economic improvement ahead.

175 days of whiskers?