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On the New York Stock Exchange, the leading index rose in anticipation of a fiscal stimulus deal despite worsening US employment.
On the 17th (Eastern time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 30,303.37, an increase of 148.83 points (0.49%) from the battlefield.
The Standard & Poor’s (S&P) 500 Index closed at 3,722.48, an increase of 21.31 points (0.58%) from the battlefield, and the NASDAQ index oriented to technology stocks closed at 12,764.75, an increase of 106.56 points (0.84%).
All three indices broke record highs based on closing price.
The market watched the US unemployment indicators and the negotiation of stimulus measures.
The expectation that a new fiscal stimulus package will be finalized in the United States soon supported investor confidence.
Major foreign media outlets reported one after another that Republicans and Democrats were closing in on a $ 900 billion stimulus deal.
The two sides are known to have agreed to exclude local government support and liability protection provisions, which had large differences of opinion, and add a cash payment plan to Americans.
However, there is still no news of the conclusion of the final negotiations.
On the contrary, the possibility was raised that the negotiations could drag on a little more until last weekend the 18th, the budget’s expiration date.
Republican Senate Representative Mitch McConnell and others said a short-term temporary budget may be necessary to prevent the government from shutting down temporarily.
A budget for one or two days was mentioned.
This is attributed to the fact that both parties have yet to agree on some details of the stimulus package.
Although the negotiations may be longer than expected, the expectation that they will be concluded sooner or later does not hurt much.
Key figures also continue to comment that an agreement is imminent.
The monetary policy easing of the Federal Reserve (Fed and Fed) is also a favorable factor for risk assets such as stocks.
The Fed did not present new measures such as extending the maturity of the bonds purchased in the Federal Open Markets Commission (FOMC) the previous day.
However, Chairman Jerome Powell supported investor sentiment with relaxing remarks, such as opening up the possibility of increasing bond purchases.
Concerns about the economic slowdown in winter due to the recent rapid spread of the new coronavirus infection (Corona 19) are not small.
In particular, key economic indicators such as consumption and employment are declining.
The US Department of Labor announced last week that the number of unemployment insurance claims increased by 23,000 from the previous week to 885,000 (seasonally adjusted).
This is the highest level since the beginning of September.
This was more than the estimated 808,000 people compiled by The Wall Street Journal.
Retail sales in the US in November, announced the day before, were also significantly slower than market expectations.
A short-term impact on the economy was found to be inevitable as more areas were strengthening containment measures due to the rapid increase in Corona 19 hospitalized patients.
However, there is great hope that the economy will normalize after the middle of next year, as vaccination of the Corona 19 vaccine has begun.
The United States Food and Drug Administration (FDA) expert advisory group today began evaluating the Modena vaccine.
The prospect prevails that the advisory group will recommend approval for emergency use.
There is also an expectation that the FDA can approve emergency use as soon as possible on this day.
By industries on this day, the materials sector rose 1.18% and the technology stock rose 0.75%.
Other economic indicators published on this day were mixed.
According to the Philadelphia Fed, the December Philadelphia Fed index fell to 11.1 from 26.3 last month.
It fell well below the market forecast of 20.0.
The Ministry of Commerce announced that the start of new homes in November registered 1,547,000 units, 1.2% more than the previous month.
It was more than 1.5.2 million units, which was a decrease of 0.7% in the market forecast.
The Kansas City Yon-Eun announced that the composite manufacturing index for its jurisdiction in December was 14, compared with 11 the previous month.
New York stock market experts expressed their expectations of a fiscal stimulus package.
“Any stimulus is positive now,” said Mary Nikola, portfolio manager at Finebridge Investments. “It will help a little more to recover the economy.”
On the Chicago Options Exchange (CBOE), the volatility index (VIX) fell 2.53% from the previous trading day to 21.93.
/ yunhap news
