Input 2021.02.06 08:39
On the 5th (local time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 31,148.24, up 92.38 points (0.30%) from the previous day.
The Standard & Poor’s (S&P) 500 index rose 15.09 points (0.39%) to 3886.83, while the technology stocks Nasdaq index rose 78.55 points (0.57%) to 13856.3. The S&P500 and NASDAQ recorded record highs for two consecutive days based on closing prices.
The $1.9 trillion (approximately 2100 trillion won) scale promoted by the Joe Biden administration is interpreted as having a positive impact on investment sentiment. The U.S. Senate passed the budget resolution with 51 votes in favor and 50 votes against after an overnight vote. The budget bill is soon sent to the House of Representatives, where the Democratic Party occupied a majority, and voted for the final vote.
The fact that companies’ earnings in the fourth quarter of last year were better than expected is one of the main factors that boosted the stock market. According to financial information company Refinitiv, 84.2% of the 184 S&P 500 companies that have announced their fourth quarter results so far have exceeded the market forecast.
News about the corona vaccine also worked as a good news on the stock market. Johnson & Johnson (J&J) has applied for emergency use of the Corona 19 vaccine to the US Food and Drug Administration (FDA). It is reported that the FDA is scheduled to hold a meeting of experts to evaluate the vaccine on the 26th. J&J shares rose 1.5% on the same day.
Meanwhile, GameStop’s stock price, which was attracted attention as a’rebellion of ants (individual investors)’, plunged this week and rebounded 19.2% that day.