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Approved ‘Stepping Bridge’ stimulus plan just before vaccine
According to Market Point on the 28th (local time), the Dow Jones 30 Industrial Average on the US New York Stock Exchange closed at 3403.97, 0.68% more than the previous trading day. The Standard & Poor’s (S&P) 500 Index closed at 3,735.36, an increase of 0.87%. The Nasdaq index, which focuses on technology stocks, rose 0.74% to 12,899.42. All three indices showed strong strength from the beginning of the market, breaking a record during the week and finally breaking new highs.
President Trump signed the Corona 19 stimulus package that crossed the threshold of the Senate and House the day before and the federal government budget for the next fiscal year. After taking over the bill from Congress on the 24th of last month, he even reviewed the veto card, saying that the amount of the personal cash payment was small, but he finally signed it in three days. The mayor, paralyzed by the possibility of a federal government shutdown (temporary suspension of activities), could breathe a sigh of relief.
It is difficult to evaluate this stimulus as one more financial aid. The Corona 19 vaccination is already underway. The US economy could have a soft landing if the stimulus acts as a ‘bridge of passage’ to avoid the economic recession until the first half of next year, when the vaccine spreads widely. “The additional stimulus is a measure of economic stability,” said Terry Sanden, chief equity strategist at US Bank Wealth Management. “The share price will close at its peak this year.”
Economy-sensitive stocks, such as airline and cruise stocks, were notable. That day, the American Airlines share price closed at $ 16.06 per share, 2.55% more than the previous trading day. Delta Airlines (+ 1.06%) and United Airlines (+ 1.53%) also rose. Norwegian Cruise and Carnival Cruise shares rose 3.86% and 4.12%, respectively. Big tech stocks also rose. Apple shares closed at $ 136.69 a share, an increase of 3.58%. Shares of Amazon (+ 3.51%), Facebook (+ 3.59%), Microsoft (0.99%) and Netflix (+ 1.00%) all rose at the same time. For Tesla, it was up 0.29%.
Good news came from Europe. The 27 member states of the European Union unanimously approved the post-Brexit future relations agreement with the United Kingdom. As of January 1 of the next year, this Agreement will be temporarily effective. As a result, the uncertainty of the ‘no deal Brexit’ in the market disappeared.
Will the variant virus spread … scared still
However, it is not without bad news. Above all, the fear of the Corona 19 virus variant is latent. “There is no evidence that a variant of the virus exists in the United States,” said Brett Giroer, deputy secretary of the US Department of Health and Welfare. He said, “It is not very widespread in the United States, but you should definitely keep an eye on it,” he said. “Please reduce travel as much as possible and wear a mask.” As of this day, the US has required all aircraft passengers from the UK to submit a negative Corona 19 test received within 72 hours prior to departure.
Furthermore, there is no concern that the reproliferation of Corona 19 will intensify after the end of the year holidays in the United States. According to the Transportation Security Administration (TSA), the number of people passing through airport checkpoints in the United States on the eve of the last day of the Christmas holidays (27) was 1,845,599. Compared to this time last year, it’s only half, but it’s the highest since the pandemic. The Centers for Disease Control and Prevention (CDC) called for “restricting travel” from the beginning of the holiday week, but it did not hold up as expected.
On that day, the Chicago Options Exchange (VIX) Volatility Index, called the Wall Street Fear Index, rose 0.33% to 21.60.
Stock markets in major European countries jumped up. The DAX 30 index on the German Frankfurt Stock Exchange closed at 13,790.29, 1.49% more than the previous trading day. The highest of all. The CAC 40 index for Paris, France, rose 1.20% to 5,588.38. The Euro Stoxx 50 index, a pan-European index, closed at 3,575.41, up 0.91%. The London Stock Exchange in England was closed due to a holiday.
