Main Quotes Calendar Forum
flag

FX.co ★ Trump, Biden, and vaccine: US stock indexes are confidently growing and breaking records

parent
Analysis News:::2020-11-25T12:20:39

Trump, Biden, and vaccine: US stock indexes are confidently growing and breaking records

US stock indexes reported growth at the close of trading on Tuesday, and the main Dow Jones Industrial Average jumped 30,000 points for the first time. The reason for the euphoria is the statement of American President Donald Trump that his advisers are ready to facilitate the process of transferring power to Joe Biden.

The news instantly bolstered the optimism of investors, who will now be less wary of the lingering uncertainty surrounding the election results. The mood of market participants was also supported by the news that President-elect Joe Biden plans to nominate former Fed chair, Janet Yellen, for the post of Treasury Secretary. She may become the first woman in this position. Earlier, Yellen stated that she supports increasing government spending to support the US economy affected by the consequences of the pandemic. In this regard, many experts believe that her appointment will increase the chances of taking additional measures of state support.

At the close of the New York stock exchange, the Dow Jones Industrial Average reported an increase of 454.97 points (1.5%) to 30046.24 points, exceeding the 30,000 mark for the first time and showing the ninth record closing level in 2020. The index jumped 62% from March lows, showing a gain of 5.3% since the beginning of this year and 13% since the beginning of the month. Analysts predict that the DJIA may show the highest monthly growth since 1987.

The S&P 500 broad market index rose 1.62% to 3635.42 points, while the NASDAQ tech index rose 1.31% to 12036.79 points. The S&P 500 and Nasdaq rose 11.2% and 10.3% in November, respectively.

Trump, Biden, and vaccine: US stock indexes are confidently growing and breaking records

Trump's prudence was an additional positive boost to the general market euphoria associated with the promising results of the COVID-19 vaccine trial. Recall that on Monday, the pharmaceutical company AstraZeneca said that an interim analysis of its drug for coronavirus infection in the UK and Brazil showed an effectiveness of 70% to 90%. Moderna, Pfizer, and BioNTech have previously reported on their success in developing anti-AIDS vaccinations. On Tuesday, U.S. officials said they plan to allocate 6.4 million doses of the COVID-19 drug as part of the first stage of vaccination after regulatory approval.

Another important factor that influenced the behavior of market participants was the data from internal statistics of the United States. Earlier, analysts reported that the consumer confidence index fell to 96.1 points in November from the revised October index of 101.4 points. At the same time, experts predicted a decrease to 98 points from the initial October value of 100.9 points.

Each of these reasons is reflected in the stock performance during the close of the trading session on Tuesday.

The leader of growth among the components of the Dow Jones Industrial Average index was Chevron Corp. shares, which increased in price by 5%. The market value of JPMorgan Chase & Co. rose 4.6%, while Goldman Sachs Group Inc. rose 3.8%.

Best Buy Co. Inc. lost almost 7% in price, despite the fact that the American electronics retailer in the 3rd quarter of the fiscal year reported profit, revenue, and sales above analysts' forecasts.

Shares Of Hormel Foods Corp. decreased by 5.6%. The American food Corporation reported a net profit of $0.43 per share for the 4th fiscal quarter, a little less than experts' expectations of $0.44 per share.

Burlington Stores Inc.'s quotes fell 1.8% despite adjusted earnings of $ .29 in the third quarter. This figure was $0.13 higher than analysts' forecasts. Burlington's like-for-like sales were down 11%, despite experts' expectations for a 16.3% fall.

Boeing shares jumped 3.29% after European regulators announced conditions for resuming flights of 737 MAX Airliners.

Tesla shares continue to show record growth, the price of securities of the US manufacturer of electric vehicles increased by 3.2%. Earlier, the company achieved a record $540 per share, and its capitalization exceeded $500 billion. Due to these permanently soaring dynamics, the head of Tesla, Elon Musk, took 2nd place in the list of the richest people in the world, beating Microsoft founder Bill gates.

Meanwhile, major stock indexes in the Asia-Pacific region closed mixed on the back of previous trading and domestic news from China. Quite serious pressure on the Chinese stock market was exerted by the news that local authorities ordered to launch an investigation into projects for the production of cars powered by alternative energy sources and related to developers Evergrande Group and Shenzhen Baoneng.

Shanghai Composite Index of the Shanghai Stock Exchange fell by 1.2% to 3362.33 points, the Shenzhen composite exchange – by 1.7% to 2254.3 points, the Hong Kong Hang Seng Index rose by 0.3% to 26669.75 points, the South Korean KOSPI fell by 0.62% to 2601.54 points, and the Australian S&P/ASX 200 jumped by 0.59% to 6683.3 points. Japan's Nikkei 225 index rose 0.5% to 26,296. 86 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...