The New York Stock Exchange finished marginally higher on Tuesday after a hesitant session, backed by the possibility of a new stimulus plan in the United States, which President-elect Joe Biden would introduce on Thursday. Long-term interest rates continue to drive up the risk appetite and cause investors to discount cyclical prices, which could benefit from fiscal and economic stimulus.
At the end of the session, at 31,068 points, the Dow Jones index rose 0.19 percent, while the S&P 500’s large index added 0.04 percent to 3,801 points, and the Nasdaq Composite index, rich in electronics and biotech companies, regained 0.28 percent to 13,072 points.
The tense political situation ahead of Joe Biden’s January 20 swearing-in, however, reduced the gains, as did the progression of the pandemic of Covid-19. Finally, stocks, with Delta Air Lines (Thursday) and many banks on Friday, including Citigroup, JP Morgan, and Wells Fargo, await the kick-off of the fourth quarter 2020 earnings season, which will be smooth this week.
Utilities (-0.5% for the sector index of the S&P 500) were among the sectors that dropped on Tuesday, suffering from an increase in prices. The “stars of quarantine measures” have withdrawn, beginning with technology (-0.4 percent). For the second session, Communication services finished at half-mast (-1.5 percent), under the weight of Twitter (-2.3 percent) and Facebook (-2.2 percent), at the centre of Donald Trump and his followers’ uproar over the contentious use of social networks.
The industries that will benefit from the economic growth are on the rise, namely oil (up 3.5%), consumer durable goods (up 1.3%), finance (up 1%), and basic materials (1 percent).
Investors are now centered on the evolution of the health crisis and the much-anticipated new assistance package for the Biden administration. The president-elect announced Friday that his economic agenda would be unveiled on Thursday, pledging “thousands of billions” in aid. The press referred to a new $3,000 billion ‘package’ which, from March 2020, will double the amount already injected by the federal state in multiple phases to boost the economy.
In specific, to resolve the ongoing situation, Joe Biden voiced his support for the payment of a new assistance check of $1,400 per American. This amount will be combined with the $600 paid out to increase the overall assistance to $2,000 per adult under the minimum package adopted before Christmas by Congress.