Financial Markets Dip Slightly After a Month of Impressive Gains

by Yehudit Garmaise

     After seeing its best month since January 1987, the Dow Jones Industrial Average dropped slightly today, slipping 0.91%, and ending the last day of November with a whimper.

   The other two major financial indexes also dropped today: the S & P 500 was down by .46% and the NASDAQ dropped .06%.

  Although stocks dipped slightly today, those losses don’t do much to take away from a month in which stocks’ performances greatly improved. 

   For instance, in November, after rising by 12%, The Dow Jones Industrial Average made impressive gains in a recovering economy. In addition, The S&P 500 climbed  11% for its best results since April, while the Nasdaq Composite soared 12%.

   Financial experts attribute November’s stock price gains to the promise that multiple vaccines are soon on their way to ending the COVID pandemic. The end of a volatile election season also could be a source of improved financial markets.

   Many money managers say that the U.S. economy will continue to recover lost activity over the next year as U.S. officials prepare to approve and distribute the vaccines, first to front line workers and the elderly, and then to the rest of the population.

   Investors also hope that a smooth transition of power as President-elect Joe Biden is inaugurated president in January will alleviate some of the uncertainty that contributed to a highly volatile financial market in the fall.