Welcome to the 2021 Annual Market Review.
The year 2021 was a memorable one. It began with hope that the war against the coronavirus might be won with the increasing vaccine availability. But the emergence of virus mutations, coupled with the uneven dissemination and acceptance of vaccines, saw millions more people become infected throughout the year.
Yet despite the proliferation of the pandemic, 2021 saw the economy make strong headway toward recovery. Monthly job growth averaged over 500,000 and the number of claims for unemployment insurance fell. Low mortgage rates helped push residential sales and prices higher. Consumer demand for goods and services increased, leading to a surge in prices, labor shortages, and supply-chain bottlenecks.
By the end of the year, inflation reached a 39-year high, prompting the Federal Reserve to curtail its stimulus measures and suggesting that an increase in interest rates was in the offing for 2022.
December saw equities end the year on a high note, with each of the benchmark indexes closing in the black, led by the Global Dow (5.7%), followed by the Dow (5.4%), the S&P 500 (4.4%), the Russell 2000 (2.1%), and the Nasdaq (0.7%).
The fourth quarter was also robust for stocks, with the S&P 500 leading the way (10.6%), followed by the Nasdaq (8.3%), the Dow (7.4%), the Global Dow (4.5%), and the Russell 2000 (1.9%).
2021 was a good one for the stock market. Notable gains were achieved across most of the primary market sectors, while each of the benchmark indexes posted impressive gains, despite the ongoing pandemic. The large caps of the S&P 500, which gained nearly 27.0%, led the way, followed by the Nasdaq (21.4%), the Dow (18.7%), the Global Dow (18.6%), and the Russell 2000 (13.7%).
You shouldn’t rely on this information as financial advice. Don’t hesitate to call your financial professional and get answers to questions about how market changes might affect your own portfolio.