By: Steven Doll, Portfolio Strategist
For the Week ending November 13th, 2020
The U.S. stock market jumped this week despite record high coronavirus cases as Pfizer reported very encouraging results for its COVID-19 vaccine. U.S. small-cap stocks outpaced U.S. large-cap stocks by over 2.5% as a vaccine would be of greater benefit for small companies than large companies. Developed markets also outpaced emerging markets on the week, yet are still underperforming emerging markets by over 5.5% year-to-date.
Interest rates also rose on Pfizer’s vaccine news as the 10-year treasury yield rose from 0.83% to 0.89%. Consequently, the U.S. bond market inched lower as prices have an inverse relationship with interest rates.
The price of gold fell 4.2% on the week as the positive news around Pfizer’s COVID-19 vaccine decreases the demand for the safe-haven metal. Meanwhile the COVID-19 vaccine news also increased the demand for crude oil, which rose nearly 5.0%
Year-to Date Return (as of 11/13/2020)