(Daily Notion): SPX500, US30, NAS100 Moved Up as U.S. Politics Stabilises For Now, Next Mover: Nonfarm Payrolls Data
NASDAQ 100 (as of Jan 8, 2021 at 11.50 a.m.)
Source: Yahoo Finance
SPX 500 (as of Jan 8, 2021 at 11.50 a.m.)
Source: Yahoo Finance
US30 (as of Jan 8, 2021 at 11.50 a.m.)
Source: Yahoo Finance
As the Democrats secured the victory and brought a long-drawn battle to close, all three major indices responded by closing higher. The NAS100 rose 2.67%, the SPX500 gained 1.64%, and the US30 increased by 0.86%. This rally was led by technology and chip stocks. Financial stocks rose by 2% on rising Treasury yields. This was spurred by expectations of a stronger economic recovery following the Democrats’ victory.
Against this positive sentiment, however, unrest is slowly building as lawmakers are now calling for Vice President Mike Pence to remove Donald Trump from office. Following Twitter’s 12-hour ban on President Trump’s account, Facebook is now following suit.
In terms of economic data, the initial jobless claims dropped to 787,000. This week has seen stronger economic data, such as the Institute for Supply Management (ISM) non-manufacturing Purchasing Managers’ Index (PMI) that increased to 57.2. The president of the Federal Reserve Bank of Chicago also hinted that a tapering of monthly bond purchases could happen by late-2021 or early 2022 if the economy keeps progressing.
A next market mover would the nonfarm payrolls that is due for release today. The forecast is estimating an additional 71,000 new jobs created in December. As the week draws to a close, it is undoubtedly a very eventful week in the U.S, causing an up-and-down cycle on Wall Street. Let’s look forward to better things in the coming weeks ahead.
FOLLOWME User Sentiment (as of Jan 8, 2021 at 11.55 a.m.)
SPX500
Short – 83.04%
Long – 16.96%
NAS100
Short – 81.55%
Long – 18.45%
US30
Short – 77.74%
Long – 22.26%
Edited 08 Jan 2021, 12:04
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