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No agreement could be reached on additional stimulus measures in the US … Expectation of resuming negotiations
Solid economic indicators · Concern about the reproliferation of Corona 19 ·
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| New York Stock Exchange (NYSE) Traders [사진= 로이터 뉴스핌] |
In the first (local time), the Dow index rose 35.20 points (0.13%) to 27,816.90, and the Standard & Poor’s (S&P) 500 increased 17.80 points (0.53%) to 3380.80 . The Nasdaq closed at 1,132.651, up 159.00 points (1.42%).
On this day, the market heeded concerns about the reblockade caused by the spread of Corona 19 and the slowdown in the economic recovery. However, news that a deal on an additional US stimulus plan is imminent boosted investor sentiment.
The market was volatile following the news of the additional US stimulus agreement.Although it was strong at the beginning of the market, it reversed its gain at the beginning of the market as concerns were raised that the agreement between the two parties would not be smooth. In particular, the Dow index fell once during the day.
Finally, President Pelosi and Secretary Manusin negotiated by phone this afternoon, but could not reach an agreement. However, when the statements that the two sides will speak again late, the mayor expressed a sense of relief.
“We will negotiate the pre-election negotiations and draw conclusions,” said Ryan Detrick, chief strategist to the mayor of LPL Financial.
The main US economic indicators released were mixed. The Labor Ministry announced last week that the number of unemployment insurance claims fell by 36,000 from the previous week to 837,000. This was less than the Wall Street estimate.
On the other hand, the manufacturing economy has deteriorated. The Supply Management Association (ISM) announced that the Manufacturing Purchasing Managers Index (PMI) in September fell to 55.4 from 56.0 last month. This is lower than the expert’s estimate (56.3) and fell in four months.
With the reappearance of Corona 19, concerns about containment also increased. In particular, among European countries, the Spanish government ordered blockades in the capital city of Madrid and nearby areas. Consequently, movement is restricted except in essential cases such as commuting to work, hospital treatment, and shopping for daily necessities. Play areas and parks are also closed and gatherings of more than 6 people are not allowed. The UK is also watching closely. In the United States alone, the epidemic has infected more than 7.2 million people and killed more than 206,000.
By shares on this day, Facebook was up more than 1.8% and tech stocks rose sharply. Exxon Mobil fell 3.5% after showing a larger-than-expected deficit in the third quarter due to falling oil prices and a sharp drop in demand. Boin was up 1.6%.
Meanwhile, investors are looking forward to the third quarter earnings season. According to Refinitiv, current revenue for the S & P500 is forecast to decline 21.4% year-on-year.
