In the New York Stock Market, the leading index rose to an all-time high due to optimism about the inauguration of the new US President Joe Biden.
On the 20th (hereafter Eastern time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 31,188.38, up 257.86 points (0.83%) from the battlefield.
The Standard & Poor’s (S&P) 500 index rose 52.94 points (1.39%) from the battlefield to 3,851.85, while the technology stock-oriented NASDAQ index soared 260.07 points (1.97%) to 13,457.25.
The three indexes all hit a record high.
The mayor kept an eye on President Biden’s inauguration ceremony and performance of major companies.
President Biden began his tenure at noon on this day.
In his inauguration speech, President Biden made no special mention of economic policy.
He promoted the unity of the United States and the restoration of alliances in the international community as the banner of the new government.
However, as President Biden has already pledged active support for economic recovery, including additional fiscal stimulus measures worth $1.9 trillion, expectations for the new government’s stimulus measures continued.
President Biden’s first executive order is expected to urge wearing a mask for 100 days to suppress the spread of the novel coronavirus infection (Corona 19).
He also said he would vaccinate 100 million people in 100 days after taking office.
Accordingly, expectations are raised that the new government will be more effective in deterring Corona 19 than the former administration of Donald Trump.
The drastic protests by former President Trump supporters, which some were concerned about, were not particularly highlighted.
The strong performance of major technology companies also led the share price to rise.
Netflix, which announced its earnings after the market close the day before, saw a sharper-than-expected increase in new subscribers in 4Q.
The potential of the pandemic beneficiary company was confirmed.
Netflix also revealed that it was also reviewing the purchase of treasury stocks, and the stock price soared about 16.9% that day, driving the strength of the overall technology stocks.
It provided confidence that the earnings of large technology stocks would be good enough to justify the surge in stock prices.
Facebook rose 2.4%, and Google’s parent company Alphabet (A) also jumped 5.4%.
In addition, the company’s overall earnings in 4Q are good, with Morgan Stanley’s announcement of net profit and sales far exceeding market expectations.
According to the fact set, about 88% of the companies that announced their results to this day have achieved net profits exceeding market expectations.
In addition, the fact that the founder Ma Yun of Alibaba in China appeared on an official statue in three months and calmed the’missing rumors’ raised by some is considered a factor that had a positive effect on the overall global stock market as well as China.
On the other hand, the continued spread of Corona 19 and the consequent reinforcement of blockade measures by each country are still a burden.
According to the statistics of Johns Hopkins University, the total number of deaths in the United States exceeded 400,000.
By industry on this day, communication surged 3.62% and technology-led rose 2.02%.
Industrial stocks rose 0.64%.
The economic indicators released on this day were somewhat sluggish.
According to the National Housing Construction Industry Association (NAHB)/Wells Fargo, the housing market index for January was 83.
It fell from 86 in May.
It fell short of 85 degrees, the forecast of experts surveyed by the Wall Street Journal.
New York stock market experts predicted that strong earnings and expectations for stimulus would support investor sentiment.
JJ Kinahhan, chief market strategist at Ameritrade, said: “As investors are anticipating major changes in the new government policies and outlook, all other issues will be pushed back to Washington events.”
“We started the performance season pretty strong,” said Chris Larkin, director of E-Trade. “What’s more encouraging is the positive guidelines companies are expecting.”
“Even though some friction is inevitable, the light will begin to appear at the end of the tunnel,” he added.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) fell 7.14% from the previous trading day to 21.58.
/yunhap news