In the New York Stock Market, the leading index rose sharply, breaking an all-time high.
As Joe Biden’s inauguration of the next US president was confirmed, political uncertainty was resolved, and key economic indicators were good.
On the 7th (hereafter Eastern Time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 31,041.13, up 211.73 points (0.69%) from the battlefield.
The Standard & Poor’s (S&P) 500 index jumped 55.65 points (1.48%) over the battlefield to 3,803.79, while the tech stock-oriented NASDAQ index surged 326.69 points (2.56%) to 13,067.48.
For the first time in history, the Dow index exceeded the 31,000 line, and the Nasdaq broke through the 13,000 line and the S&P 500 passed the 3,800 line.
The mayor looked at key economic indicators such as Biden’s final decision of the next US president, the impact of the Democratic Party’s domination of the Senate, and unemployment.
As political uncertainty in the United States has been substantially resolved, investment sentiment has been supported.
The US Congress officially confirmed Biden’s victory in the presidential election at a joint Senate and House committee on the previous day.
There were confusion, such as the presidential supporters of Donald Trump taking over the Capitol, but after the final confirmation of Congress, President Trump also promised an orderly regime transfer.
Following the White House, it was concluded that the parliamentary dominance was transferred to the Democratic Party.
In the final vote of the Georgia Senate, the Democrats won both seats and succeeded in seizing the Senate.
Although the number of seats is 50-50, the vice president can exercise the casting boat authority.
As there are no obstacles to the Democrat-led state administration, it is expected to boost the economy through active fiscal expansion.
Accordingly, financial stimulus beneficiaries such as banks are continuing a resilient rise.
Shares of major technology companies such as Apple were sluggish on the previous day due to concerns that the Democratic Party could step up regulations or raise corporate taxes, but on this day it rebounded sharply.
Considering the fact that the Democratic Party’s dominance in the Senate is still insignificant, it can be interpreted that the analysis that it will be difficult to push for drastic measures has gained strength.
Good economic indicators also led the share price to rise.
The US Department of Labor announced last week that the number of unemployment insurance claims fell by 3,000 from the previous week to 787,000 (seasonal adjustment).
It was less than the 815,000 estimates compiled by the Wall Street Journal.
Concerns over the hitting the job market due to the re-emergence of the novel coronavirus infection (Corona 19) have been alleviated.
In addition, the Supply Management Association (ISM) announced that the Service Industry Purchasing Managers Index (PMI) in December rose from 55.9 to 57.2 last month.
Experts predicted a decline from the previous month to 54.5, but contrary to concerns, the indicator improved.
News of relief also came out regarding the trade dispute between the US and Europe.
The U.S. Trade Representative (USTR) said it had suspended retaliatory tariff plans to impose French goods in response to France’s digital tax.
By stock on that day, Tesla’s share price surged about 8%.
Elon Musk, Tesla’s CEO, has emerged as the world’s richest man.
Apple’s share price also rose 3.4%, making up for the previous day’s decline.
By industry, technology stocks rose 2.65% and financial stocks rose 1.47%.
Other economic indicators released on the day were somewhat sluggish, but had little effect on the market.
The Ministry of Commerce announced that in November last year, the trade deficit reached $68.1 billion, an increase of 8.0% from the previous month.
It was more than the market forecast of $67.3 billion.
Challenger, Gray and Christmas (CG&C) announced in December that its plans to cut jobs in December reached 77,000, an increase of 18.9% from the previous month.
St. Louis Federal Reserve Governor James Bourd predicted that inflation would rise faster than expected.
Philadelphia Governor Patrick Harker said there is no need to change the bond buying policy right now, and it is possible to reduce the size of the purchase later this year or early next year.
New York stock market experts expressed their expectations for the Biden government’s active fiscal stimulus.
“We have avoided the deadlock now, and we expect more fiscal stimulus this year,” said Bearing’s chief global strategist for Crosstopper Smart.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) fell 10.77% from the previous trading day to 22.37.
/yunhap news