New York Stock Exchange’s major index closes all-time high for passing fiscal stimulus and EU vaccination

Input 2020.12.29 06:48

The three major indexes of the New York Stock Exchange rose at the same time due to the sign of the US President Trump’s new coronavirus infection (Corona 19) fiscal stimulus plan.

On the 28th (hereafter local time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 3403.97, up 204.10 points (0.68%) from the previous day. The Standard & Poor’s (S&P) 500 index rose 32.30 points (0.87%) to 3735.36, while the technology stock-oriented NASDAQ index ended at 12,899.42, up 94.69 points (0.74%).

All of these three indices broke record highs based on the closing price. As the market-awaited stimulus to respond to Corona 19 was finalized and investment sentiment was supported, the last week of 2020 started on an uptrend.

President Donald Trump signed a budget of $2.3 trillion (2520 trillion won), including the federal government budget and fiscal stimulus measures for next fiscal year. The budget consists of a $900 billion corona19 fiscal stimulus package and a federal government budget of 1.4 trillion won in 2021.

A stimulus plan that was unclear until late last weekend, such as the exercise of vetoes, was also implemented, enabling households and small businesses to be supported. The economy was sighing until the corona19 vaccine was widely distributed and states resumed the economy.

Travel and aviation stocks, which have been hit hardest by the pandemic, have been rising. Some large technology stocks were also strong, with Apple rising 3.6% and Amazon and Facebook also showing strong 3%. Disney also rose by 3%.

The European Union (EU) has also entered the vaccination stage, which supported investor sentiment. Following the UK and the US, vaccination has started in earnest, targeting 450 million people living in EU member states in Europe. The EU and the UK concluded negotiations on future relations, including a trade agreement just before Christmas, alleviating the uncertainty of the no-deal Brexit.

Financial markets, including the stock market this week, are expected to show a relatively quiet trend. Major economic indicators are also not scheduled until the 30th, and January 1st will be closed for the New Year. Despite the economic shock caused by Corona 19, the S&P 500 had a strong year this year, with the S&P 500 rising 15.6%, the Dow’s 6.5%, and the Nasdaq’s 43.8%.