Stocks took an unprecedented levels volatility and stock market lows reversed course to close out the year with record highs, starting 2021 with a strong bull market. The S&P 500 soared on Thursday, ending the year up 12.3%, leading the blue-chip index to back-to-back double digit annual gains after rising 29% in 2019. The Dow also closed at a record high, ending the just up a modest 7.3%. The Nasdaq, however, slipped lower on Thursday, but outshone the broader market for the year, skyrocketing 43.6% on the year's tech momentum.

While the market is still digesting the lingering effect of the coronavirus pandemic, investors have brighter outlooks moving into 2021 due to multiple effective vaccines and an additional $900 billion in U.S. stimulus.

For now, the U.S. economy is healing slowly from the pandemic-induced recession. The Labor Department's fresh report on weekly jobless claims totaled a much-less-than-expected 787,000 for the week ended Dec. 26, breaking below 800,000 for the first time in December. Continuing claims also unexpectedly fell, totaling 5.219 million.

Here's how the market closed out 2020:

S&P 500 Index (SPY  ) +0.64% or +24.03 points to 3,756.07

Dow Jones Industrial Average (DIA  ): +0.65% or +196.92 points to 30,606.48

Nasdaq Composite Index (QQQ  ): +0.14% or +18.28 points to 12,888.28

For Stocks, the winner of 2020 has to be Tesla (TSLA  ), with the stock reaching a new all-time high on Thursday, cementing its over 750% year-to-date rally. The electric carmaker is on a hot streak, with five straight quarters of profit and a third quarter deliveries record set this year. The stock ended the year with a blow out rally ahead of its inclusion in the S&P 500, which made it the largest company to ever be added to the benchmark.

Other top gainers for the year included pandemic favorites like Peloton Interactive (PTON  ), which gained 430%, Zoom (ZM  ), up nearly 400% and Etsy (ETSY  ), rising over 300%. Moderna (MRNA  ) also posted a historic year, suring 425% and going from being a little-known biotech company to a leader in the race to develop a COVID-19 vaccine.

For Sector Performance, most sectors on the S&P ended Thursday's session higher, with only Consumer Discretionary (XLY  ) and Energy (XLE  ) falling into negative territory. The day's biggest winners were Utilities (XLU  ), Financials (XLF  ), Real Estate (XLRE  ) and Health Care (XLV  ), each rising over 1%.

For the year, Information Technology (XLK  ) was the biggest gainer, rising about 42%. Other gainers included Consumer Discretionary, which soared 28%, Communication Services (XLC  ), rising 26%, Materials (XLB  ), climbing 18%, Health Care, increasing 11%, Industrials (XLI  ), advancing 9%, Consumer Staples (XLP  ), adding 7%, and Financials, up 4%. The biggest loser was Energy, falling 37% amid its very volatile year. The rest that ended the year negatively were Real Estate and Utilities, declining slightly by 5% and 3%, respectively.

For Commodities and Currency, the U.S. Dollar (UUP  ) ended Thursday's session lower, with the dollar index sinking to 89.62 against a basket of global currencies. That decline sunk the greenback down more than 7% for the year, and 13% lower from the 102.99 peak the dollar index reached in mid-March. Gold (GLD  ) prices left Thursday with little changed, but ended the year will its best performance in a decade. Spot gold traded flat a $1,893.84 per ounce, but was up more than 24% for the year, its best gain since 2010. U.S. gold futures settled 0.3% higher at $1,898.70 per ounce. Crude oil futures ended Thursday's session mixed and lost more than a fifth of their value amid the heightened levels of volatility trading throughout the year. For Thursday, international benchmark Brent Crude (BNO  ) fell 1% t0 $51.14 per barrel, while domestic benchmark West Texas Intermediate (USO  ) settled 0.25% higher at $48.52 each. Both benchmarks have more than doubled from their historic April lows were oil prices fell below $0.

For the week ahead, all eyes will be on the results of the Georgia Senate runoff election which will determine which U.S. political party holds the majority in the Congressional chamber.