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On the New York Stock Exchange, the leading index continued to rise due to expectations of an economic recovery from the new US stimulus package.
On the 8th (US time) On the New York Stock Exchange (NYSE), the Dow Jones 30 industrial average ended at 31,385.76, 237.52 points (0.76%) higher than the field. battle.
The Standard & Poor’s (S&P) 500 index closed at 3,915.59, 28.76 points (0.74%) more than on the battlefield, while the NASDAQ index oriented to technology stocks closed at 13,987.64, 131, 35 points (0.95%) more.
All three indices rewritten their all-time highs.
The market watched the progress of US stimulus measures, the performance of major companies, and the spread of the new coronavirus infection (Corona 19).
Investment sentiment in the asset market has further improved as the US Congress is expected to introduce new large-scale stimulus measures in the near future.
The US Senate and House of Representatives passed a budget resolution last week.
This is a measure that allows the introduction of the $ 1.9 trillion stimulus package requested by President Joe Biden through budget adjustments that only require the consent of the majority of Congress.
Even if the Republican Party disagrees, only the Democratic Party can introduce stimulus measures.
Each Democratic-led committee in the House of Representatives is releasing draft plans that will be included in the new stimulus package.
It included $ 14 billion in support of airline employee salaries and plans to expand child tax credits.
The Democratic Party is reportedly planning to complete the introduction of new stimulus measures in February.
US Treasury Secretary Janet Yellen also repeatedly urged Congress to address a $ 1.9 trillion stimulus package in an interview the day before.
“If Congress passes the stimulus package, it could return to full employment next year,” Yellen said, saying there was no reason to suffer from the slow economic recovery.
When it became known that the support of the airlines was included in the plan that was pushing the Democratic Party, the share prices of the main airlines increased significantly.
United Airlines rose more than 5.2%.
Amid high expectations for stimulus measures, strong corporate earnings are also a factor continuing the rally.
Based on the set of facts, 81% of the 295 companies included in the S&P 500 that reported earnings as of last week reported net earnings that exceeded market expectations.
Consequently, market expectations for future performance, such as the first and second quarters of this year, are also increasing.
The calm of the Corona 19 situation in the US also supported investment sentiment.
Last week, the number of new cases in the US was estimated to have decreased by approximately 25% from the previous week.
The number of new confirmed cases on a weekly basis decreased for 4 consecutive weeks, and last week’s decline was the largest since the pandemic began.
Rising US Treasury yields and widening short- and long-term interest rates are also positive for the stock market.
The widening of the short-term and long-term interest rate gap is seen as a representative sign of economic recovery.
It also positively affects the interest income of financial institutions such as banks.
If interest rates rise, the valuation burden on the stock market may increase, however optimism about the economic improvement has been playing a bigger role in recent years.
Additionally, Brent oil topped $ 60 a barrel for the first time since January last year.
Meanwhile, Tesla’s stock price rose 1.3% that day.
Tesla said it had bought $ 1.5 billion worth of Bitcoin and announced that it will be able to pay for the sale of its products in Bitcoin.
In Tesla’s announcement, the price of bitcoin rose sharply, reaching an all-time high of more than $ 44,000.
By industries, energy rose 4.17% as a result of the increase in oil prices.
Financial stocks were up 1.22% and tech stocks rose 1.04% due to widening short- and long-term interest rate differences.
The economic indicators published that day were good.
The Conference Board announced in January that the US Employment Trends Index (ETI) reached 99.27.
It went from 98.55 in December of last year.
New York stock market experts expected expectations of an economic recovery to continue to support the stock price.
“It’s still in a bull market,” said Michael Wilson, Morgan Stanley’s head of US equities strategy. “It is in the early stages of an economic recovery where momentum is gradually strengthening.”
“We continue to recommend the most favorable stocks when the economy improves as vaccines become available and daily life resumes,” he added.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) registered 21.24, 1.77% more than the previous trading day.
/ yunhap news
