New records after Christmas: government aid gives Wall Street wings

New records after Christmas
Government aid gives Wall Street wings

With his late relenting, the elected US President Trump ended the chaos surrounding the multi-billion dollar stimulus package. Accordingly, investors start the last week of the year with a thirst for action. The important indices are rising to new records.

US President Donald Trump's signature on another multi-billion dollar corona stimulus package has set new records on the US stock exchanges. The Dow Jones Industrial climbed 0.68 percent to 30,403.9 points. Also the market breadth S&P 500 and the selection indices on the technology-heavy Nasdaq Stock Exchange rose to new historic highs shortly before the end of the year.

On the weekend, US President Trump gave up his opposition to a corona stimulus package worth around 900 billion US dollars passed by Congress with a bipartisan majority. In doing so, he also released part of the US government budget – otherwise there would have been a so-called shutdown on Tuesday, i.e. an at least partial standstill in authorities and government business. The S&P 500 then gained 0.87 percent to 3735.36 points. For the Nasdaq 100 it went up 1.01 percent to 12,838.86 points even more strongly.

"Trump must have felt the increasing public pressure," wrote analyst Edward Moya of the trading house Oanda in a market commentary. Without the package signed, many Americans would not have received any unemployment benefits. Moya called Trump's days of refusal to sign the package an "unnecessary drama".

Tech giants on the rise

Apple stock
Apple stock 112.24

The leading index Dow was driven not least by the heavyweight Apple, whose price at the top of the index rose by 3.6 percent. This means that the tech giant's papers were not short of another record high. With Amazon, the Google Holding alphabet and Facebook more tech heavyweights were wanted with premiums of up to 3.6 percent.

The shares rose to second in the Dow and at a record high at the same time Walt Disney with a surcharge of three percent. In view of the high number of coronavirus infections and the associated restrictions, the papers benefited from the prospect of high access numbers to the entertainment company's streaming offers. With Netflix put the papers of another streaming provider by one percent.

Disney
Disney 145.66

Corporate news was in short supply during the day. Soaring among the second-tier stocks Myovant Sciences by more than 20 percent to a record high. The biotech company is working with the pharmaceutical giant Pfizer to develop the active ingredient Relugolix, among other things, for use against cancer. For this, Myovant Science will receive an upfront payment of $ 650 million from Pfizer.

The euro was trading at $ 1.2210 after the market closed. The European Central Bank (ECB) had previously set the reference rate at 1.2219 (Thursday: 1.2193) dollars, the dollar thus cost 0.8184 (0.8201) euros. On the bond market, the futures contract for ten-year US government bonds (T-Note Future) rose 0.04 percent to 137.96 points. The ten-year bond yield was 0.93 percent.

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