U.S. stocks recorded impressive gains as global traders bet bullish amid signs of a potentially effective COVID-19 vaccine and economic recovery in 2021.
What we know
The S&P 500 gained by 1.4% to 3,585.15 points, as it printed impressive gains. The Dow Jones Industrial Average gained 1.4%, to close at 29,479.81 points. The Nasdaq Composite, the tech-dominated index, advanced 1% to 11,829.29.
READ: Nigeria’s inflation rate hits 13.22% in August 2020, highest in 29 months
- The Russell 2000, which tracks small-cap stocks, jumped more than 2% to an intraday record and posted its first all-time closing high since August 2018.
Disney closed 2.1% higher on the back of impressive earnings. - Shares of cruise operator Carnival rose more than 7%. United Airlines and Boeing were both up more than 5%. At the sector level, energy and industrials rose 3.8% and 2.2%, respectively, to lead the S&P 500 higher. Financials were up more than 1%.
READ: NASDAQ down 2%, Tesla loses over 12%
Stephen Innes, Chief Global Market Strategist at Axi, in an explanatory note to Nairametrics, spoke on the macros that could disrupt global stocks in the coming week. He said:
“Policymakers need to bridge between this week’s positive vaccine news and mass rollout. A timetable for immunization in the US, for example, could encourage bipartisan efforts to support consumers and firms through 2021. Meanwhile, monetary policymakers can afford to maintain extreme accommodation until CPI inflation rises materially above target.
READ: U.S dollar tumble, Currency traders more risk averse
Related to ongoing policy support, social mobility restrictions will likely remain in place to varying degrees for months to come. Risk assets require carefully calibrated monetary and fiscal policy support for this period.
They will be increasingly sensitive to insufficient policy support as the virus spreads ahead of a vaccine rollout.”
READ: Report any employer without Group Life Insurance for employees – PenCom
