United States (US)

Equity markets in the US ended the year on a high with indices at record levels. The S&P 500 index returned 16.3% for the year and the Dow Jones Index returned 7.2% for the year. The tech-heavy Nasdaq index gained a massive 43.6% for the year as tech stocks gained value in the Covid-19 environment.

The historic gains in these indices were a result of the large infusion of liquidity into the US monetary system by the Federal Reserve and optimism around Covid-19 vaccines being widely distributed.

There is however a disconnect between investment markets and the impact of the pandemic on individuals. There is high unemployment (around 20 million people are unemployed in the US), hospitals are overwhelmed, and small businesses have been seriously affected.