Wednesday December 30th 2020
Wall Street in a buying mood
Investors rely on Vaccine and Biden
A package with significantly higher corona aid for US citizens is currently stuck in the Senate, but investors are bursting with confidence. The Astrazeneca vaccine feeds hope that the pandemic will soon be over. And a new president will soon be sitting in the White House.
After taking a breather from the previous day, investors returned to stocks on Wall Street on the penultimate trading day of the year. The price gains were moderate, however, there were no new record reports for the stock market barometers Dow, S&P 500 and Nasdaq 100 in the middle of the week. The Dow Jones Industrial advanced by 0.24 percent to 30,409.5 points at the final bell. The one that maps the broad US stock market S&P 500 closed 0.13 percent higher at 3732.0 points. The one dominated by technology stocks Nasdaq 100 stepped on the spot with 12845.36 points.
Thanks to corona vaccinations that have started worldwide, investors in the USA are increasingly relying on a radical economic recovery for 2021, also supported by the approaching assumption of office of the new US administration by election winner Joe Biden. In the morning, another manufacturer, the British pharmaceutical giant Astrazeneca, received approval for a vaccine in Great Britain. Argentina also approved the British vaccine – other countries should follow soon.
Analyst Edward Moya from trading house Oanda explained the price gains despite the high number of infections and many deaths in the USA with the upcoming change of government: "With the devastating news about Covid-19, expectations are rising on Wall Street that the new administration under President Biden will be in the first place a hundred days will give the government a strong boost. "
Even the preliminary Senate blockade of a planned increase in government economic aid to cushion the consequences of the pandemic hardly dampens the mood, said Rabobank investment strategist Piotr Matys. "The market believes that US households will receive more aid in a few months, even if the government withdraws the one-off increase."
Historical recovery rally
With a view to the end of the year, the owners of US stocks have little reason to complain: thanks to a never-before-seen recovery rally after the likewise historic price slump at the beginning of the corona pandemic in spring, the Dow is currently up 6.6 Percent to book. With the market-wide S&P 500 it is almost 16 percent and with the Nasdaq 100 even 47 percent.
The papers of were among the biggest winners in the leading index Dow Caterpillar. They gained 1.9 percent to a good 180 US dollars. The US investment house Baird chose the construction equipment manufacturer's shares as the favorites for the coming year and raised its target price from 206 to 220 US dollars.
New all-time highs reached the entertainment company's shares in the Dow Walt Disney and the credit card provider Visa. Walt Disney papers rose 2.2 percent at the top of the Dow and that of Visa 1.9 percent.
Meanwhile, the shares of the manufacturers of corona vaccines showed pronounced weakness: The Mainz-based shares listed in New York Biontech lost 4.9 percent and the title of the Tübingen Curevac 3.7 percent. The US vaccine manufacturer's papers Moderna lost 2.9 percent. All three stocks thus extended the losses of the past few weeks. Before that, however, they had risen sharply.
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