Main Quotes Calendar Forum
flag

FX.co ★ The US stock market is rapidly gaining momentum, but the problems have yet to disappear

parent
Analysis News:::2020-11-16T10:25:25

The US stock market is rapidly gaining momentum, but the problems have yet to disappear

The US stock market is rapidly gaining momentum, but the problems have yet to disappear

There was good growth on the stock markets of the United States of America on the last working day last week, which even led to new record levels in some areas. Thus, the S&P 500 indicator reached its maximum values.

The Dow Jones' final gain for the week ending November 13 was 4.1%, while the S&P 500 advanced 2.6%. The reason for this rapid increase was the news last Monday, which concerned the successful trial of a vaccine against coronavirus infection, jointly developed by the American company Pfizer and the German BioNTech. Clinical trials have shown the effectiveness of the new drug in the range of 90%, which, of course, could not go unnoticed by the markets, who showed extreme enthusiasm for such news.

However, the US stock markets were also negative. In particular, the NASDAQ indicator recorded another decline to 0.6% in the last three weeks.

News about the vaccine has become a lifeline for the market in the face of critical reduction, which has been noted recently. Now the markets are optimistic and anticipating the situation with the COVID-19 pandemic to change as soon as possible. This gives us hope that markets will be fully opened, as they were before the introduction of quarantine restrictions. The economy may start to recover from the crisis earlier than the period predicted by analysts.

Nevertheless, the situation with the spread of coronavirus infection has not changed radically yet and remains very difficult and unfavorable. So, the average daily number of new cases of infection increased by about 5% in most of the United States. The number of hospital admissions is also growing rapidly in approximately 46 States. Moreover, anti-records are regularly recorded for the number of cases, which continue to indicate a severe epidemiological situation.

The Federal Reserve was quick to make a statement that we should not hope for an early release of the vaccine, because in the next few months this will definitely not happen, and this time will be one of the most difficult for the economy of the world in general, and America in particular.

The price level from American manufacturers for the second month of autumn this year rose by 0.3%. At the same time, experts claimed that the growth will not exceed 0.2%.

For the last month of autumn, the index of consumer confidence in the country has already decreased to 77 points, while was 81.8 points earlier. If the November value fail to increase at the end of the reporting period, this will be the lowest level in the last few months. According to preliminary data from experts, there should be no fall: they claim that there will be an increase to an average of 82 points.

The results of Friday's trading on the US stock market are very positive. The Dow Jones Industrial Average gained 1.37%, or 399.64 points, which allowed it to move to 29,479.81 points.

The Standard & Poor's 500 index rose by 1.36%, or 48.14 points. Its current level is 3,585.15 points.

The NASDAQ Composite index rose by 1.02%, or 119.7 points, moving it to 11,829.29 points.

Analyst InstaForex
Share this article:
parent
loader...
all-was_read__icon
You have watched all the best publications
presently.
We are already looking for something interesting for you...
all-was_read__star
Recently published:
loader...
More recent publications...