Dow Jones, S&P 500, US Agenda and Nasdaq Data
The prospect of even more financial incentives being approved by Congress have pushed the stocks to all-time highs on Tuesday.
- Dow Jones Industrial Average closed at 30,335.67, down 0.2 percent, or 68.30 points.
- The S&P 500 fell 0.2 percent to 3,727.04.
- Nasdaq Compound closed at 12,850.22, down 0.4 percent.
Tuesday's decline halted a three-day streak for both Dow Jones and the S&P 500.
All three averages reached record levels at the opening. It was observed that Dow Jones rose more than 100 points at the highest level of the session.
Mitch McConnell, Majority Leader in the Senate, blocked Senate Minority Leader Chuck Schumer's attempt to accelerate a bill that would increase direct payments to Americans from $ 600 to $ 2,000. However, the bill passed parliament late Monday.
President Donald Trump previously called for direct payments to Americans of $ 2,000. "If Republicans have no desire for deaths, and if that's the right thing to do, they should approve payments of $ 2,000 as soon as possible," he tweeted on Tuesday.
[embed]https://twitter.com/realDonaldTrump/status/1343998076084748288?s=20[/embed]
Senate Republicans opposed the increased direct payments despite Trump's demands. However, several republican senators expressed support for checks of $ 2,000.
Republican Senator Josh Hawley tweeted: "We've rounded up the votes. Let's vote today."
[embed]https://twitter.com/HawleyMO/status/1343960155277451265?s=20[/embed]
Apple and Home Depot dropped more than 1 percent, contributing to the downfall of Dow Jones. Intel recouped some of the losses after Third Point's Dan Loeb's call to discuss the company's deal options.
Despite Tuesday's slight decline, stocks are heading towards the end of the year with surprisingly strong gains. The S&P 500 increased by 15.4 percent in 2020. Dow Jones rose 6.3 percent. Meanwhile, Nasdaq Compound rose 43.2 percent as investors flocked to major tech giants like Apple, Amazon and Facebook.
“The combination of vaccination practices, financial incentives and easy money policy continues to create a positive backdrop for stocks as they enter 2021,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.
“The deal on the newly released US fiscal stimulus package, with global central banks continuing to expand monetary regulation to continue to support the recovery, removes recent obstacles.”
As the new year approaches, the number of coronavirus cases in the US continues to increase, raising doubts about economic recovery. According to CNBC analysis of Johns Hopkins University data, at least 184,000 new infections per day were reported in the US last week.
“Vaccine distribution is now officially under way, but the pandemic has already reached alarming levels on multiple fronts,” said Jason Pride, Special Wealth CIO at Glenmede. The resurgence of the pandemic leads to nationwide lockdown measures, hampering efforts to rebound the economy. "However, if the spread of the epidemic cannot be contained by the end of the year and a large-scale distribution of the vaccine is achieved, it will likely be an important undertaking to make these lockdowns in early 2021.”
GLOBALT portfolio manager Keith Buchanan stated that investors are waiting for the Senate run-off next week in the state of Georgia where the advantage could be converted from Republicans to Democrats.
“The balance of the senate in Georgia is a big story. It is important in terms of what it can mean for financial strategies (more financial incentives) to be implemented as we enter a new year.”
Source:
https://www.cnbc.com/
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