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The main U.S. stock indexes closed the week on the upside, after posting record high closes on Thursday. Investors were buoyed by the U.S. Federal Reserve Board’s Dec. 16 statement, maintaining policy interest rates at their ultra-low levels between 0% and 0.25%, while confirming plans to extend asset purchases at the rate of US$120 billion per month until there’s progress towards full inflation and the Fed’s long-term 2% inflation target. The Fed sees growing economic activity through the first half of 2021, as Covid-19 vaccinations become more widespread, leading to rising GDP and increasing employment. Investors also hoped for progress from Congress on a pandemic relief bill as well as funding approval to prevent a government shutdown.
The S&P 500 Composite Index gained 1.3% on the week, while the Nasdaq Composite Index rose 3.1%. Friday’s session was marked by higher-than-usual volumes, as stock index futures and options, as well as single stock options and futures expired simultaneously – the so-called “quadruple witching day.”
Toronto’s S&P/TSX Composite Index just missed another weekly advance, closing with a hairline loss of 0.1%, just below breakeven for the week. Materials, energy, and financials, the heavyweight sectors on the index lost ground, even though crude oil rose 5.2% on the week and gold advanced 2.4%. A stronger U.S. dollar dampened the S&P/TSX Composite for the week.
Monitor the main stock and commodity indices daily with the Fund Library’s interactive Markets Page.
* NEI makes changes to its responsible investing lineup. NEI Investments on Dec. 15 proposed changes to its responsible investment fund lineup. It plans to merge nine mutual funds into nine other mutual funds as shown in the following table. “RS” in the continuing fund name stands for “Responsible Screens (RS).” Funds designated “RS” automatically exclude companies with specific types of involvement in industries related to tobacco, weapons, nuclear power, gambling, and pornography.
In a press release, Frederick M. Pinto, Senior Vice President and Head of Asset Management for NEI Investments, said “By simplifying our fund lineup in certain areas while expanding the opportunity set in others, we reaffirm our commitment to bringing Canadians a comprehensive set of responsible investment solutions, so they can achieve their goals with confidence.”
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