​[뉴욕증시 마감] ‘Goldilocks Rally’ returns in the near future of’Biden Pyo’s stimulus package’

On the 5th (local time), the New York stock market continued to rise day after day, recording the best weekly performance since last November. Last month, the US’ official employment indicators appeared sluggish than expected, limiting the rise, but maintained an uptrend thanks to expectations of passing stimulus measures and strong corporate performance.

On this day, the Dow index on the New York Stock Exchange (NYSE) closed at 31,1148.04, up 92.18p (0.30%) from the previous day. On the same day, the S&P 500 index rose 15.07p (0.39%) to 3886.81, and the technology stock-oriented Nasdaq index rose 78.55p (0.57%) to 13856.30.

This week, the New York Stock Exchange was the best since last November. The S&P 500 index, which rose by 4.65% for one week, hit a record high for five consecutive trading days. The Nasdaq and Dow index also rose 6.01% and 3.89% over a week, respectively.

In addition, this week, the rise of the Russell 2000 Index, which is centered on small caps, also stood out. On this day, the Russell 2000 index reached 2230.49, a 28.07p (1.27%) increase compared to the battlefield, and it rose 7.56% weekly, showing the largest increase since June last year.

By the 11 sectors of the S&P500 index, 10 sectors excluding technology stocks (-0.22%) recorded an uptrend, and stocks related to economically sensitive raw materials and energy were strong on the day.

Each is △ 0.92% of essential consumer goods △ 0.89% of consumer discretionary goods △ 0.93% of energy △ 0.09% of finance △ 0.25% of healthcare △ 0.53% of industry △ 1.71% of raw materials △ 0.34% of real estate △ 0.95% of communication services △ -0.54% of utilities. The sector has risen.

‘Goldilocks Rally’ returns in the near future of’Biden Pyo’s stimulus package’

Even though the January employment index released by the US Department of Labor on that day fell short of market expectations, it did not change the trend of the stock market. In this regard, Dennis Dick Brighttrading trader said in Reuters, “The market is re-reflecting the Goldilocks scenario, which is expected to normalize after the Corona 19 crisis. This is not just a matter of speed, but how fast the economy will recover. “He emphasized.

In January, the unemployment rate in the US fell 0.4 percentage points from the previous month to 6.3%, lower than the forecast of 6.7%. On the other hand, last month, the number of new employment in the non-agricultural sector in the US recorded 49,000, slightly below Dow Jones’ forecast of 50,000.

Two days ago, ADP’s private employment report counted 174,000 cases, which is a rapid growth compared to the previous month, and the market was expecting an unexpected recovery in the job market, but in the end, it was found that the damage of the third epidemic of Corona 19 was not avoided.

Chris Zacharelli, Chief Investment Officer (CIO) of the Independent Advisors Alliance, told CNBC, “The small increase in job numbers has not impressed the market at all.” Thanks to the stimulus, it continues to rise,” he diagnosed.

On the other hand, the US Democratic Party’s move to expedite additional economic stimulus measures raised upward pressure on the stock market.

On that day, the Senate passed the US Federal Budget Bill Resolution (HB1368) for fiscal year 2021, and gained the right to exercise the right to exercise budget reconciliation in the process of dealing with stimulus in the future.

The resolution will allow Democrats to approve a total budget of $2.2 trillion, including the $1.9 trillion stimulus package proposed by President Biden, without the support of the opposition Republican Party.

However, on this day, the Senate slightly revised the original bill that passed the House of Representatives on the 2nd, so Congress is expected to begin discussing additional stimulus measures in earnest from next week only after the resolution passes through the House of Representatives vote again.

The Senate added a plan to raise the minimum wage in 50 US states to $15 per hour during the Corona 19 epidemic and the possibility of limiting the payment of an additional $1,400 per person (about 1.57 million won) to top earners in the stimulus bill.

“The new stimulus will provide tremendous support for the economy,” said Edward Smith, head of asset allocation research at Ratborn Investment Management. “It will definitely reduce the short-term risk until the vaccine is fully deployed.”

In addition, it is also a good news that Johnson & Johnson (J&J) applied for emergency use of the Corona 19 vaccine to the US Food and Drug Administration (FDA). Accordingly, the FDA will hold a meeting of experts to evaluate the vaccine on the 26th.

The volatility of the stock market continued to stabilize thanks to the authenticity of the game stop incident. On this day, the Chicago Options Exchange (CBOE) Volatility Index (VIX) recorded 20.96, down 3.72% from the previous day.

European stocks staggered by deteriorating economic indicators… the rise in raw materials continues

On the 5th, major European stock markets fluctuated due to deteriorating economic indicators in Germany and expectations of additional stimulus measures from the US. Germany’s industrial order declined 1.9% in December last year, turning it to a decline in eight months, which also fell short of the market forecast (-1.0%), which caught the increase.

On this day, the DAX30 index of the Frankfurt Stock Market in Germany fell 0.03% from the closing price of the previous trading day to 10,4056.72, and the FTSE100 index in London, UK, fell 0.22% to 6489.33, respectively.

On the other hand, the CAC 40 index of France’s Paris stock market rose 0.90% to 5659.26, and the Euro Stoxx50 index, a pan-European index, ended the market at 3655.77, up 0.37%.

International oil prices continued to rise for 5 consecutive trading days. This is due to expectations for a demand recovery following the decline in crude oil inventory and the calming of the spread of Corona 19.

On the same day, futures for March delivery of Western Texas crude oil (WTI) on the New York Commercial Exchange (NYMEX) recorded 56.85 dollars per barrel, up 62 cents (1.1%) compared to the battlefield. It is the highest since January 22nd last year. If the price jumped 9% per week in the aftermath of the daily increase this week, it showed the highest weekly increase rate since October last year.

Brent crude oil for April of ICE futures exchange in London, UK, also rose by 50 cents (0.85%), and was signed at $59.34 per barrel. During the week, it rose 6% to $60 per barrel.

The international gold price, which fell sharply the previous day due to the strong dollar amid expectations of the US economic recovery, rebounded in one day. It follows the progress of the US administration’s discussion of additional stimulus measures to release the dollar on a large scale. On that day, the gold for April delivery on the New York Merchandise Exchange ended at $1813, an increase of 1.2% ($21.80) per ounce.

Silver for delivery in March, which has repeatedly fluctuated due to the influx of collective buying from individual investors who led the recent’game stop incident’, ended at $27.019, up 3% ($0.79) per ounce.