S&P 500, Nasdaq rise to new record highs to begin December

Dec. 1 (UPI) -- The S&P 500 and Nasdaq Composite rose to new record highs on Tuesday to begin the month of December.

Markets bounced back from losses to end November as the S&P 500 increased 40.82 points, or 1.13%, to a record 3,662.45, while the Nasdaq Composite gained 156.37 points, or 1.28%, to rise to a record 12,355.11. The Dow Jones Industrial Average also climbed 185.28, or 0.63%.

Overall the S&P 500 has gained 13% for the year, while the Nasdaq has soared up 38%.

Apple stock rose 3.08% and Intel climbed 2.5% to help lead the Dow higher.

Meanwhile Tesla stock increased 3.02% upon news that it would join the S&P 500 on Dec. 21.

Markets were driven higher Tuesday in part due to lawmakers unveiling a $900 billion stimulus plan, including more than $200 billion in Paycheck Protection Program loans for small businesses.

The rise also came as Adobe Analytics reported that U.S. shoppers spent a record $10.8 billion on Monday -- an increase of 15% from 2019.

The Dow recorded its best single month performance since January 1987 despite all three major markets falling to end the month Monday.

The blue chip index gained a total of 11.8% percent in November, while the S&P climbed 10.8% and the Nasdaq grew 11.8%.

While some analysts predicted the strong November performance could lead markets to retract in December, Tom Lee of Fundstrat Global Advisors cited data showing that markets consistently add gains in December during bull markets when the S&P 500 was up more than 10% for the year through November.

"December looks like it will be a very strong finish for 2020," Lee wrote.