Stock Market News of the First Week of the Year

Stock Market News of the First Week of the Year US markets closed sharply on Monday, the first trading day of the year, amid rising coronavirus cases, the slow launch of vaccines, and the upcoming Georgia state election's second round election uneasiness.   Stock Market News of the First Week of the Year Dow Jones, Nasdaq and S&P 500, which recorded their sharpest daily declines in more than 10 weeks, closed sessions in negative territory. How were Comparative Reviews Conducted? The Dow Jones Industrial Average (DJI) dropped 1.3 percent (382.59 points), the worst daily percent drop since October 28. It also marked Dow Jones' first negative start to a year since 2016. However, the index reached its highest intraday value of 30,674.28. The S&P 500 finished the day at 3,700.65, down 1.5 percent (55.42 points) after hitting an intraday high of 3,769.99. The S&P 500 also recorded its worst daily percentage drop since October 28. According to the data of the comparative valuation index, almost all 11 sectors closed in the negative zone. Those that emerged as the biggest losers were utilities (electricity, water and gas services), real estate and industrialists. The technology-weighted Nasdaq closed at 12,698.45 points, down 1.5 percent (189.84 points). The index recorded its worst daily performance since December 9. Facebook, Inc. FB shares fell 1.5 percent. Facebook holds a Hold position to # 3 at Zacks Rank. The CBOE Volatility Index (VIX), which measures the degree of fear in the markets, rose 18.4 percent to 26.93 and reached its highest level in two weeks. On Monday, 14.15 billion shares were traded, a figure over the average of the last 20 sessions of 10.94 billion. The dips beat the improvements in the NYSE at a rate of 2.14 to 1. In the Nasdaq, this ratio was 1.43 to 1.   Coronavirus Fear is Increasing Investors who finished the year at a high level started trading with a low morale on Monday, the first trading day of the year. The reasons that triggered the decline on Monday were the increasing number of coronavirus cases and the impact this could have on the global economy. Implementing a nationwide shutdown to prevent the mutated form of COVID-19 discovered in the UK a few weeks ago has led to an upward trend in sales. In the United States, hospitalized patients and deaths caused by the deadly virus continue to increase. Moreover, the slow vaccination process further disrupts the mood for investors. Investors are also closely watching Tuesday's Senate elections in the state of Georgia, which will determine control over the legislature. If the results of the second round elections cause political turmoil over recent financial spending in Washington, the potential to instill volatility in the markets is enormous.   Economic Data The Ministry of Commerce announced that construction spending increased by 0.9 percent in November to $ 1.459 trillion, due to the housing market's strong stance and low mortgage rates. This is the highest level the government has announced since it began monitoring data in 2002. Also, the initial reading of the final market manufacturing survey for December was 56.5. However, this reading was revised to 57.1.   Source: https://finance.yahoo.com/ You may also be interested in: Long Term Target in Bitcoin is 146 Thousand Dollars