Dow Jones stays above 30,000: Economic aid lures Wall Street

Wednesday December 16, 2020

Dow Jones stays above 30,000
Economic stimulus lures to Wall Street

After a long dispute, an agreement in the US Congress regarding a corona aid package appears to be emerging. That is a support for the Dow Jones. A mega merger in the cannabis industry is also causing prices to skyrocket.

Movement in the dispute over government stimulus in the US attracts investors to Wall Street. In anticipation of the results of the monetary policy deliberations of the central bank (Fed), however, they held back today with larger purchases. In addition, the rampant coronavirus pandemic is dampening the mood to buy, said Art Hogan, chief investment strategist at asset manager National Securities.

For the technology index Nasdaq passed it with one Plus of 0.5 percent nevertheless to a record high of 12,687 points. The U.S. Standard Values ​​Index Dow Jones and the broad one S&P 500 in each case hardly changed 30,155 respectively 3701 Counters, but stayed in touch with their top marks. Democrats and Republicans in the US Congress have not yet agreed on a package, said Peter Cardillo, chief economist at Spartan's financial adviser. "You are clearly moving in the right direction. A deal will be announced soon."

Bitcoin climbs to a record high

Brokers expected little stimulus from the consultations of the US Federal Reserve. Neil Wilson, chief analyst of the online broker Markets.com, predicted that the Fed will not increase its bond purchases. "But it will make sure the market knows that it will not reduce support and will do more if necessary."

Meanwhile broke through Bitcoin the psychologically important 20,000 mark and rose by almost seven percent to a record high of 20,782.2450 dollar. "This will ignite general interest in cryptocurrencies over the Christmas season," predicted Ayush Ansal, head of the hedge fund Crimson Black Capital. "People are starting to believe in Bitcoin again." This also applied to companies from the cryptocurrency sector and companies that deal with the blockchain technology underlying Bitcoin & Co.

Mega fusion in the cannabis industry

Meanwhile the owners were floating off Aphria and Tilray on cloud seven. The planned merger of the two cannabis producers brought the stocks price gains of at times 6.5 or more than 26 percent. With Aphria swallow Tilray the only Canadian cannabis producer that is consistently making significant operating profits, commented analyst Vivien Azer of asset manager Cowen.