[뉴욕증시 마감] Bidenpyo’s massive stimulus plan was released, but’tuk’…

On the 15th (local time), the New York stock market closed lower. U.S. President-elect Joe Biden has unveiled stimulus measures, but expectations have already been reflected in the market and concerns about tax increases have froze investor sentiment. Also, the sluggish consumption indicators also weighed on the market.

On the New York Stock Exchange (NYSE), the Dow index closed the deal at 3814.26, down 177.26p (0.57%) from the battlefield. The S&P 500 index dropped 27.29p (0.72%) to 3768.25. The Nasdaq Index fell 114.14p (0.87%) to close at 1,2998.50.

On a weekly basis, the Dow index fell by about 0.9% this week. The S&P 500 index and the Nasdaq index fell 1.5% each.

The day before, Biden-elect presented a stimulus package worth $1.9 trillion (about 28.2 trillion won). The stimulus package included an increase in the federal minimum hourly wage from the current $7.55 to $15. The actual minimum wage in the United States is set mainly by local authorities such as the state government. The federal minimum wage, which is based on this, has never increased since 2009. The $15 offered today is the current New York City minimum wage.

It also included a payment of $1,400 per American. It is separate from the $600 paid since December last year. Measures such as expanding the unemployment benefit subsidy and extending the period were also put into place.

But the market reaction was bleak. This is because expectations for stimulus measures have already been considerably reflected in the price. It means that investors were driven by the so-called’buy rumors and sell on the news’. Boris Schlossberg, director of BK Asset Management, said, “The market’s response to the stimulus on this day seems to be a move to’sell it on the news’.”

Moreover, concerns over the possibility of tax increases due to large-scale stimulus measures increased. The Democratic Party had emphasized the need for tax increases even before the presidential election. Therefore, the outlook is prevailing that various tax hikes, including corporate tax, will inevitably be promoted for financing.

James Knightley, ING’s chief global economist, said, “Biden suggested that bridging the tax loophole would help government fiscal recovery, but with sovereign debt exceeding 100% of GDP, at some point corporate and income taxes and capital Income tax increase will be inevitable.”

In addition, it is questionable whether a stimulus package could be agreed smoothly as the Democrats and Republicans are in fierce confrontation over the impeachment of US President Donald Trump. There is also a growing concern that it may be difficult for the Republican Party to pass the Senate with half the seats.

The deteriorating consumption indicators in the US also weighed on the market. The US Department of Commerce announced that December retail sales fell 0.7% from the previous month. The impact of the re-proliferation of Corona 19 in the United States was visible, such as a sharp decline in restaurant sales.

In addition, the preliminary value of the Michigan Consumer Attitude Index for January was 79.2, down from the previous month’s final value of 80.7. The fact that it received poor report cards, such as falling short of the market forecast (79.4), also weighed on the market.

The raging situation of the corona 19 spread also raised investors’ anxiety. More and more countries are announcing strengthened quarantine measures due to the re-proliferation of Corona 19. The UK mandated pre-corona 19 testing and quarantine for a certain period of time for all inbound travelers. There are steady warnings that Germany and France will strengthen the blockade. In particular, the increased number of patients in China, the early epicenter of the pandemic, and the strengthening of containment measures also made the market more unstable.

Across the Atlantic Ocean, major European markets fell all at once. The French CAC40 index fell 1.22% to 5611.69, and the German DAX index fell 1.44% to 13,8787.73, respectively. The UK FTSE index closed at 6735.71, down 0.97%. The pan-European index, the Stokes 50 Index, also closed the deal at 3599.55, down 1.15%.

International oil prices closed down at the same time on the news that Corona 19 was re-proliferating in China. Western Texas crude oil (WTI) for February delivery on the New York Commercial Exchange (NYMEX) closed at $52.36, a drop of 2.3% per barrel. The March Brent crude on the London ICE Futures Exchange fell 2.5% to $55.04 per barrel.

Gold fell amid the strong US dollar On the New York Merchandise Exchange, gold for February delivery was trading at $1829.90, down 1.2% per ounce from the previous trading day.