On Thursday, all three key indices of Wall Street spiked to record closing highs as investors appeared to be betting on a larger pandemic stimulus bill under a Democrat-led both chambers in the US Congress, playing down the day’s fiscal data that had shown a steep stagnation in US labour market alongside a record number of lay-offs in 2020 as the US House Speaker Nancy Pelosi had called on an immediate removal of US President Donald Trump under a 25th Amendment act following yesterday’s pro-Trump protests that had ransacked US Congress, marking up a harrowing assault on modern-era democracy as a pro-Trump rally had ill-advisedly turned into a catastrophic riot.
Besides, followed by yesterday’s riot in the US Congress, world’s No. 1 social media platform Facebook Inc. alongside Twitter had banned Trump’s accounts for an unspecified period of time. On top of that, earlier in the day, Labour department data had revealed that the US weekly initial jobless claims, the most-timely indicator to the health of US labour market, fell marginally to a seasonally adjusted 787,700 over the week that ended on January 2, while other Government data had revealed that the US layoffs climbed more than 18 per cent in December.
Nonetheless, as investors looked beyond a deluge of downbeat data alongside the exodus on US Congress yesterday, US money markets seemed to be looking forward to a Biden presidency alongside more stimulus.
Wall St. rallies to record closing highs, as investors look past Trump
Citing statistics, in the day’s Wall Street closing bell, trade sensitive Dow extended its record-setting rally by 0.69 per cent to 31,041.13 and S&P 500 surged 1.48 per cent to hit a new record closing high of 3,803.79, while tech-heavy Nasdaq torrented 2.56 per cent to $13,067.48 as Trump’s executive order to delist as many as 11 Chinese firms seemed highly unlikely to come into action at this standpoint.
Meanwhile, referring to a riant market optimism over a larger pandemic stimulus bill alongside a likely raise of a one-off pay-check to $2,000 from an earlier $600 passed in the US Congress later last year, a portfolio manager at GolbAlt in Atlanta, Keith Buchanan said, “You’re seeing a reflation trade on the assumption that a more progressive and aggressive fiscal stimulus package could be in the offing”.