The US stock market finished November with the strongest monthly gains in many years. Besides, global stock investors are also in the elevated mood. Having shrugged off fears over a limping economic recovery, market participants are inspired by the news on the vaccine front. Optimism boosts the appetite for riskier assets. In the meantime, a few pharmaceutical companies reported on successful human trials of their vaccines. In response, global stocks are developing a dazzling rally as market participants link the mass vaccination worldwide to a rapid recovery of the global economy. “It’s like a risk-positive nirvana has descended over the capital markets and traders have very little to trouble themselves with other than going with the flow,” analyst from Australia Chris Weston comments on overoptimistic market sentiment. Amid a steady bullish run, the US benchmark stock indices are on track to reach incredible highs which have never been seen over the history. Besides, the global MSCI World index is also set for the best monthly gains ever.
Importantly, several vaccines have been already approved for emergency use both in the US and Europe. However, this is not the only cause for optimism across global trading floors. Experts say that the nomination of ex-Fed Chair Janet Yellen as Treasury Secretary is certainly market-friendly news which created powerful momentum in the US stocks. Analysts and investors expect Janet Yellen to provide the US economy with extra financial aid. Moreover, they anticipate that she will push ahead with a new stimulus bill in Congress. The first support package worth $3 trillion was passed by the lawmakers in the spring.