As a trying and tragic 2020 comes to a close, the stock market provided one of the year's few silver linings.
Several of the major indices finished New Year's Eve with small gains, and two closed out the year at all-time highs. That capped off spectacular rallies from 2020's bear-market bottom and a year of improbably strong performance.
Investors had plenty to consider as they traded on New Year's Eve: a pandemic that remains uncontained as vaccines roll out nationwide; a Georgia run-off election that will determine control of the Senate; declining but still-high unemployment claims; and the possibility of more stimulus measures in 2021.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Stocks finished the day mostly mixed, but gains from the likes of Intel (INTC, +2.2%) and McDonald's (MCD, +1.5%) helped the major blue-chip indices close out the year with small gains.
- The Dow Jones Industrial Average finished 0.7% higher to a record 30,606, marking a 7.3% gain for 2020.
- The S&P 500, up 0.6% to a new all-time high of 3,756, finished the year 16.3% in the black.
- The Nasdaq Composite closed up 0.1% to 12,888, capping a massive 43.6% rally that marked its best annual performance since 2009.
- The Russell 2000 finished 0.3% lower to 1,974, but that still represented an 18.4% climb across 2020.
Position Yourself for Success in 2021
With that, we wish you a happy and prosperous new year! But will the market acquiesce?
Most research houses are calling for continued stock gains in 2021, and Kiplinger's own forecast is for "high-single-digit to low-double-digit percentages."
The market should be helped by a recovery in corporate earnings: FactSet senior earnings analyst John Butters says analysts are predicting a 21.8% jump in S&P 500 profits for 2021. "If 21.8% is the actual growth rate for the year, it will mark the largest annual earnings growth rate for the index since CY 2010 (39.6%)," he says.
The best way to take the reins of any opportunities in 2021, of course, is to be armed with the best investments. Check out all our market forecasts and stock and fund picks in Kiplinger's 2021 Investing Outlook.
Whether you're looking for stocks, exchange-traded funds or mutual funds, you'll find a plethora of ideas to help you build your wealth in 2021 … and far beyond.
-
The 'Vinyl Rule' of Retirement: Plan for Two Sides in Your Next ActBecause “Life is what happens when you’re busy making other plans.”
-
Five Destinations for Active and Chill Travelers AlikeWhether you reach for a paddleboard or a lounge chair, find your groove in a location that offers something for both kinds of travelers.
-
Stocks Slip as Job Growth Stalls: Stock Market TodayThe August jobs report came in much weaker than expected, while the unemployment rate ticked higher.
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market TodayThe S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Stocks Slide to Start September: Stock Market TodaySeasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Stocks End Strong Month on a Down Note: Stock Market TodayThere was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market TodayThe world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
