Daily Management Review

Vaccine Hopes Reflect On Stock Index


Holiday weekend could also result in increased market volatility.

The stock index of U.S. saw a rise on Wednesday, December 30, 2020 with investors’ focus turned towards the prospects of gradual economic recovery in the coming year due to the vaccine roll out whereby being accompanied “more monetary and fiscal support”.
The listing sentiments reflected at the stock index as Britain approved the “emergency use of AstraZeneca and Oxford University’s COVID-19 vaccine” after the U.S. main index fell from “intraday record highs” arrived on Tuesday as the uncertainty loomed over “bigger stimulus check”. On Tuesday, “Senate Majority Leader Mitch McConnell” put a stop to a “quick vote” in support of U.S. President Trump’s all towards increasing “COVID-19 relief checks to $2,000 from $600”.
In the words of the Rabobank’s FX strategist, Piotr Matys:
“The market is of the view that U.S. households will receive additional support a few months down the line even if the government decides to pull back higher stimulus checks”.
While, Reuters added:
“At 07:04 a.m. ET, Dow e-minis were up 91 points, or 0.3%, S&P 500 e-minis were up 13.25 points, or 0.36%, and Nasdaq 100 e-minis were up 49 points, or 0.38%”.
In the meantime, the U.S. reported its “first known” case of more virulent strain of COVID 19 which was first discovered in Britain. Scientists claim the new strain could be “more contagious” from its previously known forms of “SAR-CoV-2 variant”, although it did not appear to be “more severe in the symptoms it causes”. Till date, over 19 million people fell victim of the pandemic while it also claimed more than three hundred thousand lives in the U.S.
Expectations are there for lighter trades over the weekend that has been shortened by the new year’s holiday. This could also result in increased market volatility. As per Reuters:
“The benchmark S&P 500 index, which has bounced back nearly 70% from its late-March trough, is on course to end the month with a 3% gain after a 10.8% rally in November”.