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(DAILY NOTION): Wall Street Bulls Need Rescuing, Next Mover: Nonfarm Payrolls, Biden Stimulus Package

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NASDAQ 100 (as of Mar 5, 2021 at 11.55 a.m.)

(DAILY NOTION): Wall Street Bulls Need Rescuing, Next Mover: Nonfarm Payrolls, Biden Stimulus Package

Source: Yahoo Finance

SPX 500 (as of Mar 5, 2021 at 11.55 a.m.)

(DAILY NOTION): Wall Street Bulls Need Rescuing, Next Mover: Nonfarm Payrolls, Biden Stimulus Package

Source: Yahoo Finance

US30 (as of Mar 5, 2021 at 11.55 a.m.)

(DAILY NOTION): Wall Street Bulls Need Rescuing, Next Mover: Nonfarm Payrolls, Biden Stimulus Package

Source: Yahoo Finance

A dark cloud still looms over Wall Street as the day ended with NAS100 losing 2.1%, the US30 falling 1.3%, and the SPX500 dropping 1.28%.

At the Wall Street Journal Jobs Summit yesterday, the chairman of the U.S. Federal Reserve (Fed), Jerome Powell caused quite a ripple effect in the market. Powell stated that the easy monetary policy would go on despite the increase of U.S. rates. The chairman also downplayed the concerns about rising inflation.

Following his comments, the Wall Street Journal reported that the 10-year U.S. Treasury rates rose to more than 1.55%. This then led to volatility in the market, which jump-started sell-off in the technology sector. There were also losses that were recorded in the Industrial and Basic Materials sector. The CBOE Volatility Index also leapt by 7.12%, as reported by Investing.com.

What could potentially dissuade the formation of headwinds would be upbeat progress on the Biden Stimulus Package in the U.S. Senate to boost risk-on sentiment in the market. The massive $1.9 trillion stimulus package is expected to stimulate economic recovery in the U.S. The Chief Economist of the International Monetary Fund (IMF), Gita Gopinath, had also touted the stimulus package could increase the U.S economic output by 5% over the next three years.

Recently, President Biden has agreed to cut-off those earning more than $80,000 a year or families who earn more than $160,000 a year from receiving the $1,400 stimulus cheques. His compromise would certainly be a valuable time-saver for the Democrats who are attempting to present the bill to him for sign-off into law next week.

However, traders would also most likely be keeping an eye out for the release of the nonfarm payrolls today. The initial jobless claims came in at 745,000 against a forecast of 750,000 but still remain substantially higher than pre-pandemic levels.

With the week coming to a close, can a tailwind make an appearance to blow away the dark clouds over Wall Street and support the fight of the Wall Street bulls? Let’s watch this space.

FOLLOWME User Sentiment (as of Mar 5, 2021 at 11.45 a.m.)

SPX500

Short – 61.89%

Long – 38.11%

NAS100

Short – 50.22%                

Long – 49.78%

US30

Short – 65.14%

Long – 34.86%


 

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