4th Quarter 2020 Market Summary

The S&P 500 Index closed at 3,756.07 on 12/31/20, another all-time high.

In spite of COVID 19 and all the talking heads in 2020, the S&P 500 Index posted a total return of 18.39%. Eight of the 11 major sectors were up on a total return basis.

The top-performer was Information Technology, up 43.89%, while the worst showing came from Energy, down 33.68%. A Bloomberg survey of 17 equity strategists found that their average 2021 year-end price target for the S&P 500 Index was 4,035 as of 12/12/20. The highest and lowest estimates were 4,400 and 3,800, respectively.

The yield on the benchmark 10-year Treasury note (T-note) stood 124 bps below its 2.16% average yield for the 10-year period closing trading on 12/31/20 at 0.92%. The COVID-19 pandemic coupled with the accommodating monetary policy from the Federal Reserve (“Fed’) kept a lid on interest rates and bond yields.