Wall Street Begins 2021 on a Stimulus Induced High
January 11 2021 - Team Stockal
Markets kicked off 2021 on a strong note, with Wall Street’s main indexes closing the week at a record high on news around stimulus. The week began with Senate runoffs in Georgia being won by Democrats, giving the party control of the chamber and set the stage for more stimulus and public spending to boost the domestic economy.
Following a disappointing jobs report during the week, President-elect Joe Biden on Friday called for stimulus for COVID-19-impacted Americans ‘now,’ boosting sentiment again on Friday to propel markets to record highs. For the week, the Dow (DJI) gained 1.6%, the S&P 500 (GSPC) rose 1.8% and the Nasdaq Composite (IXIC) jumped 2.4%.
However, the week was marred by gloomy images of pro-Trump protestors storming and breaching the U.S. Capitol to protest the election results and disrupt the Congress’ debate to certify Biden’s victory in the election. The police action in response to the riots left around five people dead, while a police officer succumbed to injuries days later.
In other news, bitcoin stormed to fresh record highs, touching $40,000 for the first time ever. The cryptocurrency doubled in price within a month, having risen more than 900% since a low in March.
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The two deadly crashes, the ongoing probe and negative impact of the coronavirus crisis on the aviation sector all weighed down on the stock in 2020. Its value dropped by around 36%. Concerns have grown about the compensation’s impact, but some analysts quoted here said that the $1.77-billion compensation was already covered by accounting provisions and some had already been paid. The remaining burden was relatively small.
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Tesla witnessed a stratospheric rally in 2020, surging a whopping 720%, with frenzied investors scurrying for a pie in Tesla’s successful share story. Confidence in the stock doubled down after it was inducted into the S&P 500 late last month, cementing the already-upbeat year with an icing on top. Moreover, the electric-car maker’s role in the country’s e-vehicles journey also assumes significance under incoming President-elect Joe Biden’s administration. Biden has advocated a greater push towards clean energy and solutions.
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Tiffany reports record holiday sales
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