On Monday, all three key indices of Wall Street closed out the session at record closing highs as progresses over another round of trillion-dollar stimulus bill alongside an ongoing mass-scale vaccination campaign across the United States and Europe had eased off market participants’ pessimism over the pace of economic recovery alongside a still-struggling labour market.
Nonetheless, many analysts and economists scolded investors over the latest winning streak in the Wall Street citing that the US money market apparently became more speculative rather than a house that used to host solid investments, while a flurry of fund managers had also expressed sheer discontent about the recent gains in the Wall Street citing an abstract perception of unjustified gains over the coming weeks.
On the contrary, a perspicacious bunch of fund managers and Wall Street lenders appeared to have clung on to the hopes of an earlier-than-anticipated economic revival despite a latest leg of retail frenzy on AMC and GameStop shares.
In factuality, in the day’s gains in the Wall Street were mostly meaded out of a remark from the US Treasury Secretary Janet Yellen who had been quoted saying earlier in the session that an approval of a jawdropping $1.9 trillion in fiscal aid package proposed by the US President Joe Biden earlier last month would help an ailing US labour market return to full employment as early as next year, downplaying frets of a mammothlike budget deficit.
Wall Street spikes to record high as speculative bets heat up
Citing statistics, in the day’s Wall Street wind up, trade-sensitive Dow and benchmark S&P 500 had secured their sixth straight session of gains, their longest winning streak since August 2020 and small-cap Russell 2000 had largely outperformed their larger peers, raising concerns of a series of speculative trading what many analysts had branded as a gambling run.
However, Dow wrapped up the session 0.76 per cent higher to 31,385.02 and S&P 500 surged 0.74 per cent, while tech-heavy Nasdaq climbed 0.95 per cent to 13,987.64, leading the tally of gains. Meanwhile, harshly criticizing a latest run of winning streak in the Wall Street, a portfolio manager at Kingsview Asset Management in Chicago, Paul Nolte said, “Investors are starting to play the economy opening up and the vaccine starting work and maybe they can go to a baseball game this summer.
Stocks have been over-valued for much of the past year. And the things we’re seeing now, with GameStop and Bitcoin, those are signs of speculation, not investing”.