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US stock futures on Tuesday contributed to the record profit on Monday on Wall Street, as investors gained confidence with the implementation of coronavirus vaccinations which they hope will pave the way for the return to normal activity in the coming months and rumbled after President Donald Trump has signed an economic $ 900 billion. the help package.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| Ek: DJI | DOW JONES AVERAGE | 30403.97 | +204.10 | + 0.68% |
| SP500 | S&P 500 | 3735,36 | + 32.30 | + 0.87% |
| I: COMP | NASDAQ COMPOSITION INDEX | 12899.423155 | +94.69 | + 0.74% |
Trade is declining as the turbulent 2020 comes to an end. After the nose dive in March when the pandemic took hold, stock prices more than recovered, aided by massive additions of cash in the central bank and ultra-low interest rates, potentially making stocks more profitable than other investments.
On Monday, the S&P 500 climbed 0.9% to 3,735.36, driven by gains in technology, communications services and consumers’ discretionary shares. Businesses hardest hit by the pandemic, including restaurants, airlines and cruise operators, were among the biggest gains.
STOCKS JUMP TO RECORDS AS TRUMP SIGNS ON CORONAVIRUS AID
The broad rally came when investors welcomed President Donald Trump’s decision to sign a $ 900 billion economic aid package for the coronavirus, despite his complaints that the payment of $ 600 was too low for most individuals. The package also includes $ 1.4 billion to fund government agencies, which would avert the closure of the federal government that would otherwise begin Tuesday.
Wall Street set new records on Monday after Trump chose not to veto the bill, helping to increase uncertainty as governments re-establish pandemic battlefields and business borders, weighing on global economic activity.
U.S. stock futures on Tuesday contributed to the record gain on Monday in Wall Street, as investors gained confidence in implementing coronavirus vaccines, which they hope will pave the way for a return to normal activity in the coming months.
The Dow Jones Industrial Average averaged 204.10 points, or 0.7%, to 30,403.97, a record high. The Nasdaq composite climbed 94.69 points, or 0.7%, to 12,899.42, also a record high. The Russell 2000 Index of Smaller Companies fell 7.70 points, or 0.4%, to 1,996.25.
Wall Street has been hoping since last week that Trump would withdraw from his threat to veto economic legislation, paving the way for more financial support to hurt individuals and businesses.
The U.S. economy continues to decline under widespread coronavirus outbreaks, infections and hospitalizations, so the promise of more relief for millions of Americans helps reduce uncertainty amid the reopening of travel and business wreaths in response to a new coronavirus variant that presumably is more contagious.
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“Overall, it’s a kind of broad-based optimism, which so far has been good in the deployment of the vaccine, and the stimulus bill to bridge the gap,” said Ross Mayfield, Baird’s investment strategist. actually just a the continuation of the broader force we’ve seen over the last few months. ”
Stocks also received a seasonal boost, Mayfield said. The market tends to climb in the last trading days in December and the first two trading days in January, a phenomenon known as the “Santa Claus rally.” Since 1950, the S&P 500 index has risen by an average of 1.3% over the seven days.
Inventories rose in Asia on Tuesday, with Japan’s Nikkei 225 index peaking at 30 years after President Donald Trump signed a $ 900 billion economic aid package.
In Tokyo, according to FactSet, the Nikkei 225 jumped 2.7% to 27,568.15, the first time it has traded more than 27,000 since August 1990. The market reached its all-time high of 38,915.87 on December 29, 1989.
The benchmark is strong through strong gains in heavyweights such as Mitsubishi Heavy Industries, which rose 4.6%, clothing manufacturer Fast Retailing, also by 4.6%, and technology and energy company SoftBank, which rose 4.2% has.
Other Asian stocks were also mostly higher.
The Hong Kong Hang Seng Index rose 0.9% to 26,557.18. In South Korea, the Kospi rose 0.1% to 2,814.16. Australia’s S & P / ASX 200 climbed 0.5% to 6,700.30.
The Shanghai Composite Index fell 0.3% to 3,386.57. Shares fell in Taiwan and Indonesia, but rose in Malaysia and Singapore.
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Meanwhile, treasury yields were mixed. The ten-year treasury yield, which could affect interest rates on mortgages and other consumer loans, rose from 0.92% late Monday to 0.94%.
Trading on Wall Street is expected to be light this week, as most fund managers and investors have closed their books for the year. It will be another holiday shortened week, with New Year’s Day on Friday.
In other trades, standard U.S. crude rose 31 cents to $ 47.93 a barrel in electronic trading on the New York Mercantile Exchange. It lost 61 cents to $ 47.62 a barrel on Monday. Brent crude, the international standard, picked up 29 cents to $ 51.19 a barrel.
The dollar traded at 103.69 Japanese yen, down 103.81 yen late Monday. The euro rose to $ 1.2236 from $ 1.2214.
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AP business writer Alex Veiga contributed.