The month of November has been quite happening because of some important reasons. First and foremost, the elections, the elections during the time of a worldwide pandemic were conducted and Joe Biden has won the elections. The Democratic Party will again come into power while Donald Trump has not yet completely come to terms with his defeat and is not accepting the same. On the other hand, two biotech and medical companies namely Pfizer and Moderna announced their vaccines against the coronavirus. This news was much awaited because the cases are still increasing and an efficient vaccine is required to curb the situation.
These two incidents had to impact the financial sector and for some firms, this month went quite well in terms of finances. Moreover, the news of the vaccine also led to a better income for some businesses that were completely shunned due to the pandemic.
The Situation of the US Stock Market
The stock market regularly witnesses ups and downs but this month has been quite different when it comes to the Dow Jones Industrial Average. Since the year 1987, Dow Jones has recorded the highest gain for a single month. The S&P 500 Index also rose quite high. Therefore, for Dow Jones Industrial Average and S&P 500 Index, this month went well and because of these, the stocks of several companies benefitted well.
The stocks of Wall Street witnessed a fall this Monday as it dipped low. Although the month as a whole went well but this week, Dow Jones Industrial Average and S&P 500 also fell.
The world is waiting for a vaccine and the government is trying to start the distribution of the same as soon as possible across the whole United States. Moderna is trying to get its vaccine fully authorized. Alex Azar, the Health Secretary of the United States announced this Monday that before Christmas, they could make available the first two vaccines against the coronavirus infection within the United States.
As mentioned above, the two hot issues at present are the vaccine and Joe Biden’s win. Certain sectors will immensely benefit and flourish under Joe Biden while there will also be sectors that might get neglected and eventually suffer losses. The financial sector is heavily affected during such times. The economy fell because of the coronavirus pandemic and now, it is time to restore it to normal.
A fully approved vaccine would greatly help in the re-establishment of various businesses and firms that incurred great losses or even stopped during the pandemic. The travel industry might again become as lavish as it was before the pandemic because a perfect vaccine would mean nearing the end of this pandemic. If the vaccine works well, then the cases would eventually become less and we can hope that very soon the coronavirus will leave the world.
Therefore, overall, the month of November was financially good but how the future unfolds in the case of vaccine and politics, will decide the further situation of the stock market and the financial sector as a whole.