![[뉴욕전망] Concerns about the growing corona and symptoms](https://www.blockmedia.co.kr/wp-content/uploads/2020/06/뉴욕증시.jpg "[뉴욕전망] Concerns about the growing corona and symptoms")
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 stock-oriented Nasdaq index closed at 12,990.50, 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%.
◆ Will Biden be weak in the $1.9 trillion stimulus market?
Biden’s $1.900 trillion stimulus package announced today included a $1,400 per capita cash payment to Americans. In the $900 billion stimulus package passed through the US Congress last month, $600 per person in cash payments will be combined to receive $2,000 in cash per person. It included a $400 per week unemployment benefit payment until September, and an extension of the eviction and foreclosure of tenants until September.
New York stock market analysts are raising an analysis that the biden government’s stimulus measures are likely to lead to tax increases.
BK Asset Management’s director Boris Schlossberg said, “The price response of the market (for stimulus packages) seems to be a so-called’sell on the news’ movement.”
Tim Grekiki, senior 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.”
There is also a prospect that emerging markets in Asia will be hit by additional economic stimulus measures. Funds have flowed into Asia, excluding Japan, for 18 weeks in a row, but it is analyzed that market trends may change with biden stimulus measures to promote US economic growth.
James Sullivan, JP Morgan Asia Equity Research Director, said, “If stimulus measures are implemented, it is very likely that funds will flow into the US from emerging Asian economies.”
Sullivan said the US economic growth rate was initially expected to drop by 2 percentage points this year due to the lack of stimulus packages, but had expected a 70bp rebound assuming a $900 billion stimulus package. However, considering that the size presented by Biden-elect this time is more than twice as large as expected, it is predicted that it will work in the market.
Bank of America also predicted that the success of Biden’s additional stimulus could boost the economy by 2 percentage points. Bank of America said, “It is disappointing that the Corona 19 virus re-spreads and is putting a burden on growth, but the Biden administration has an easier path toward stimulus.”
However, there were also opinions that they should watch until the additional stimulus bill is passed. “Every bill passed is likely to be smaller than Biden’s proposal, and less than half of the proposed bill,” said analyst Brian Gardner Stiepel. Once recovered, the pressure to pass through another Corona 19 package can be further reduced.”
Raymond James expects Congress’s additional expenditure to support consumer discretionary equity, finance, healthcare, energy, industrial and real estate investment trusts.
In a note to investors, Raymond James said, “The next round of proposals could cause some volatility for tech companies, including tax increases.”
◆’Martin Luther King’s Day’ closed
Next week, the New York Stock Exchange and the bond market are scheduled to close on the 18th (local time) on’Martin Luther King Day’. Martin Luther King Day marks the day of the birth of Martin Luther King Jr., an American human rights activist, on January 15th. The third Monday of each year is a federal holiday, and the New York Stock Market and the bond market are closed.
In addition, the US commodity market, including crude oil from the New York Commercial Exchange (NYMEX) and gold from the New York Merchandise Exchange (COMEX), does not carry out regular transactions or settlement.