Editor’s note:Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.
U.S. equity markets kept climbing in 2020’s fourth quarter, making for a strong close to a crazy year. The passage of a second coronavirus relief bill and rollout of COVID-19 vaccines strengthened expectations in a swift bounceback from the pandemic, boosting the S&P 500 index to 33 all-time highs. It ended the year at a record 3,756, up 12.2% in the final quarter and nearly 20% for the year. From the index’s March low, it gained 65.2%. Growth funds across the market-cap spectrum posted the biggest gains, while value continued to underperform.