Dow Jones back over 30,000: Potential economic aid drives Wall Street

Tuesday, December 15, 2020

Dow Jones back over 30,000
Possible stimulus packages are driving Wall Street

Indications of a possible rapprochement in the negotiations for a new US stimulus package help Wall Street to gain share price. Apple shares are picking up because the company wants to ramp up iPhone production.

Wall Street is buoyed by the prospect of movement in the dispute over further stimulus. Due to the rising number of coronavirus infections and in anticipation of the monetary policy advice from the Fed, investors were reluctant to make larger purchases. The Dow Jones Industrial overcame the highly regarded mark of 30,000 points and closed 1.13 percent up with 30,199.31 points. The day before, the US leading index had reached a record high of 30,325 points, but then fell back. The market breadth S&P 500 moved around 1.29 percent to 3694.62 points in front. For the tech-savvy The Nasdaq 100 was down 1.07 percent to 12,595.92 points upwards.

Stock marketers expect little impetus from the Fed on Wednesday. A further increase in securities purchases is not to be expected for the time being, forecast investment strategist Francois Rimeu from asset manager La Francaise. Instead, the Fed will extend the term of the program and signal that the current zero interest rate policy will be fixed for several years. This is fueling speculation that inflation will rise, especially since the infection increases the likelihood of further cash injections, said analyst Ole Hansen from Saxo Bank. Therefore, some investors turned to gold, which rose by a good one percent to $ 1,850 per troy ounce (31.1 grams).

In stock values ​​moved up Moderna into the spotlight. The biotech company's coronavirus vaccine cleared a major hurdle on the way to US approval. The The company's stock still fell nearly five percent. Analyst Michael Yee from investment bank Jefferies commented that the US health authority's examination papers did not bring any surprises. He expects the drug to be released in the coming week. In contrast, the titles of Eli Lilly, which were more expensive by four percent, were in demand. The pharmaceutical company wants the biotech company specializing in lucrative gene therapies Prevail take over for around a billion dollars. Their shares rose at the top 82 percent to a record high of $ 22.75.

One of the favorites on the US stock market was also Apple with a Price increase of almost five percent. According to a newspaper report, the electronics group wants to increase the production of iPhones by almost 30 percent in 2021. This brought Apple suppliers like Lumentum, Qorvo or Skyworks Price gains of up to seven percent. According to insiders, the Chinese rival Google is looking into building its own electric cars. Preliminary talks with Chinese vehicle manufacturers have already taken place. Meanwhile, online retailers continued to soar. You benefit from the pandemic restrictions for stationary retail. So the shares of Etsy or Wayfair by more than seven percent.