[뉴욕증시] Despite the disclosure of additional stimulus measures, concerns over tax increases

[샌프란시스코=뉴스핌]Correspondent Kim Na-rae = The New York Stock Market closed down on the 15th (local time) despite President-elect Joe Biden’s stimulus publicly disclosed. Expectations for stimulus measures have already been reflected in the market, and concerns over tax increases and sluggish retail sales indicators have froze investor sentiment.

On that day, the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 3814.26, down 177.26 points (0.57%) from the previous trading day. The Standard & Poor’s (S&P) 500 index fell 27.29 points (0.72%) to 3768.25, while the technology stocks Nasdaq index closed at 12,998.50 points, missing 114.14 points (0.87%).

Weekly, the Dow index fell 0.9% this week, and the S&P 500 and NASDAQ fell 1.5%.

The mayor said that Biden-elect presented a $1.9 trillion in stimulus package the day before, but he was agitated. It included additional cash payments to Americans, expanded unemployment benefits and extended periods.

Expectations for stimulus measures have already been considerably reflected in prices, and concerns over possible tax increases have increased. The Democratic Party had raised the need for tax increases even before the presidential election.

Boris Schlossberg, director of BK Asset Management, said, “The response to the stimulus package in the market today is interpreted as a move to’sell it on the news’.”

Tim Grekiki, chief investment strategist at Inverness Consulting, said, “It’s easy to spend, but we also focus on how to pay the problem. The market often ignores politics but not taxes.”

The deterioration of the US consumption indicators released on that day also weighed on the market. The US Department of Commerce announced that December retail sales fell 0.7% from the previous month. It was found that the effect of the re-proliferation of Corona 19 is visible, such as a sharp decline in restaurant sales.

“The disappointing retail sales figures this morning reinforced the idea that more stimulus would be needed,” said Ian Linden, head of US interest rate strategy at BMO Capital Markets, New York.

In addition, more and more countries are announcing policies strengthened by the re-proliferation of Corona 19. The UK has mandated corona 19 pre-screening and quarantine for a certain period of time for all entrants, and comments commented that Germany and France will also strengthen the blockade. Also, the number of patients is increasing again in China. The mixed performance of major banks did not provide power to the stock market.

Financial stocks’ performance announcements were mixed. JPMorgan Chase recorded 4Q net profit and sales that exceeded market expectations, but sales at Citigroup and Wells Fargo were sluggish.

Citigroup shares plunged more than 6.9% on the day, and Wells Fargo fell 7.8%. JPMorgan’s share price also fell by 1.8%.

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