The VIX rises in early 2021, the Dow Jones falls more than 380 points | Anue Juheng-International Political Economy



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On Monday (4), the virus of the new variant of the crown continued to spread globally and political uncertainty persisted. The number of hospitalized patients with new crown pneumonia in the United States hit a new high, gold was up, the US dollar was nearly flat, and the VIX panic index soared by more than 16%.

Although major US stock indexes rose briefly in the morning, Apple, Amazon and Boeing led the falls. The four major US stock indices collectively closed. The Dow Jones plunged more than 700 points at a time and closed at more than 380 points. The S&P closed at more than 1.4%, a record last year. The biggest one-day sell-off since October 28, the Nasdaq posted its worst single-day performance since December 9 of last year.

Georgia, the United States, will hold a final election for two Senate seats on Monday, with Republicans and Democrats in the Senate each holding 50 and 48 seats. If the Democratic Party wins the last two seats, the seats of the two parties will be tied. By then, Vice President-elect He Jinli can cast a key vote to make the Democratic Party the majority party in the Senate.

Charles Evans, president of the Federal Bank of Chicago, said that the new corona vaccine can control the global epidemic, but the Federal Reserve (Fed) is far from ending ultra-ultra-flexible monetary policy. Fed Chairman Bauer said late last year that most Fed officials believed the United States would not raise interest rates until after 2023.

The global epidemic of new corona pneumonia (COVID-19) continues to have a fever. Before the deadline, according to real-time statistics from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 85.49 million and the number of deaths has exceeded 1.84 million . The United States has accumulated more than 20.73 million cases were diagnosed and the accumulated number of deaths exceeded 352,000.

Variant viruses are spreading in Europe, America, Asia and Africa around the world, the UK’s fourth level epidemic prevention zone has been expanded, Lebanon and Scotland have been blocked again, Germany has expanded measures blockade, Japan plans to issue a state of emergency in Tokyo, South Korea prohibits private gatherings of more than 4 people, the United Kingdom Announced the postponement of the second dose of vaccine.

Monday (4) the performance of the four main US stock indices:

  • The Dow Jones index fell 382.59 points, or 1.25%, to close at 30,223.89 points.
  • The S&P 500 Index fell 54.33 points, or 1.45%, to close at 3,701.74 points.
  • The Nasdaq index fell 189.84 points, or 1.47%, to close at 12,698.45 points.
  • The Philadelphia Semiconductor Index fell 12.29 points, or 0.44%, to close at 2,783.21 points.
Of the top 11 S&P sectors, only energy stocks closed higher, led by real estate, utilities and industrials.  (Photo: Finviz)
Of the top 11 S&P sectors, only energy stocks closed higher, led by real estate, utilities and industrials. (Photo: Finviz)

Focus actions

The five kings of science and technology are stained with blood. Apple (AAPL-US) fell 2.47%; Facebook (FB-US) fell 1.54%; Alphabet (GOOGL-US) fell 1.51%; Amazon (AMZN-US) fell 2.16%; Microsoft (MSFT-US) fell 2.13%.

Boeing led the decline in the components of the Dow Jones. Boeing (BA-US) fell 5.30%; Walgreens and Boots (WBA-US) rose 3.81%; Coca-Cola (KO-US) fell 3.79%; Traveler (TRV-US) fell 3.36%; Dow Chemical (DOW-US) fell 2.63%.

Fei’s half-component stocks were mixed. Qualcomm (QCOM-US) fell 2.52%; AMD (AMD-US) was up 0.64%; NVIDIA (NVDA-US) was up 0.45%; Micron (MU-US) fell 1.50%; Applied Materials (AMAT-US) was up 0.66%.

Taiwan ADR shares are only closed to UMC. TSMC ADR (TSM-US) was up 2.44%; UMC ADR (UMC-US) fell 4.93%; ASE ADR (ASX-US) rose 2.23%; Chunghwa Telecom ADR (CHT-US) was up 0.54%.

Stock Market News

The legal entity expects TSMC’s capital expenditures in 2021 to peak at $ 20-22 billion. TSMC’s share price hit a new record high and TSMC’s ADR (TSM-US) rose 2.44% to $ 111.70 per share, still reaching a record high.

Tesla (TSLA-US) rose 3.42% to $ 729.77 a share on Monday, setting a record high and has received dividends for eight consecutive business days. Tesla hit all-time highs last quarter and last year.

China Mobile (CHL-US) fell 5.89% on Monday after the New York Stock Exchange announced on Thursday (7) that China’s top three telecommunications companies will begin the delisting process; China Mobile (CHL-US) fell 5.89% on Monday; USA) fell 5.38%; China Unicom (CHU-US) fell 3.17%.

The UK officially launched the vaccination scheme for AstraZeneca and the University of Oxford on Monday, and the UK began distributing the AstraZeneca vaccine on Monday morning local time. AstraZeneca Pharmaceuticals (AZN-US) was up 1.34%.

Alibaba ADR (BABA-US) continued to fall 2.12% to $ 227.79 a share on Monday and closed for two consecutive trading days. Many foreign media reported that the whereabouts of Jack Ma, the founder of Alibaba and Ant Group, is unknown and that he has not appeared in public for almost two months.

American health insurance giant Centene (CNC-US) announced Monday that it will acquire Magellan Health (MGLN-US) for $ 2.2 billion to help expand its mobile health platform. The transaction is expected to be completed in the second half of the year. The first rose 3.43%, the second shot up 13.04%.

Economic data

  • Dec US Markit Manufacturing PMI Ending Value Reported 57.1, Expected 56.3, Previous Value 56.5
  • The monthly growth rate of US construction spending in November reported 0.9%, expected to be 1.0%, and the previous value was 1.6%

Wall Street Analysis

Wall Street crocodile and billionaire Carl Icahn said in an interview Monday: “In my day, I’ve seen a lot of crazy bounces. There are a lot of stocks that are priced wrong, but they all have one thing in common. Eventually, they will hit a wall. ., In a painful callback “.

John Stoltzfus, chief investment strategist at Oppeneheimer, an investment bank, said on Monday that if the Democratic Party wins the second round of the Georgia election, the S&P 500 could drop 10% in a divided Congress.

Marc Chaikin, CEO of Chaikin Analytics, said that based on the two pillars of fiscal and monetary policies coordinated by the United States Department of the Treasury and the Federal Reserve Committee, and the successful launch of the new vaccine against Crown pneumonia, the stock market will continue to rise in 2021, although this path will follow Some bumps.

According to Henry Allen, an economist at Deutsche Bank, the biggest problem the world economy will face in the coming year will be how to quickly vaccinate people, especially among vulnerable groups like the elderly. Whereas new variants discovered in the UK and South Africa will spread more rapidly. Soon, the market may pay close attention to any news about the new coronavirus or the launch of a vaccine.




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