Market Recap
US Markets:
The S&P 500 closed at a record high for a second day in a row. Investors weighed the latest developments on a new stimulus package.
The Dow Jones climbed 59.87 points, or 0.2%, the S&P 500 gained .18%, and the Nasdaq fell 0.1%.
Senate Majority Leader Mitch McConnell’s rejection of a bipartisan $908 billion stimulus proposal largely weighed on the markets and muted gains.
Further factors weighed on markets as well. Despite the positive vaccine data from today, with the UK becoming the first country to approve Pfizer and BioNTech’s vaccine, Federal Reserve Chairman Jerome Powell called the economic outlook “extraordinarily uncertain” yesterday.
Private payroll data was also disappointing. Economists expected 475,000 private jobs to be added in November. However, according to ADP, only 307,000 were added. This was also the lowest figure since July.
Additionally, the US reported 180,083 new Covid-19 cases- the most in four days and up from 157,901 the day before. 2597 people also died- the second-highest daily rate on record. Hospitalizations also continue to hit records with at least 98,691 beds occupied on Tuesday.
Mortgage applications in the United States also fell 0.6% in the week ended November 27th, after rising 3.9% in the previous period largely due to a plunge in refinancing.
Cryptocurrency:
Cryptos did not move much today for a second day in a row. Bitcoin remained around the $19,000 level again. After hitting an all-time intraday high Monday, and trading as high as $19,864, Bitcoin somewhat pulled back Tuesday and traded around the $19,000 level, where it still remains. Although Bitcoin still has not hit the $20,000 mark yet, it has now shattered its previous record of $19,666 from back in December 2017. Bitcoin’s value is now up over 150% since the beginning of the year, and has been propelled by economic stimulus, validation from public companies such as Paypal, and interest from major investors. Although some believe a Bitcoin correction is inevitable, others believe that it could exceed $20,000 as a hedge against inflation before the end of the year. Chainlink led the cryptocurrencies today gaining 3.13%.
Overall Market:
European markets closed mixed on Wednesday. The DAX 30 closed down .5% while the CAC 40 and FTSE MIB closed lower as well, however, the FTSE 100 and IBEX 35 outperformed. Uncertainty surrounding post-Brexit trade negotiations combined with positive news about coronavirus vaccines kept the markets relatively tame. The UK became the first country to approve usage of the Pfizer and BioNTech’s COVID vaccine sending shares of BioNTech soaring by 6.3%.
US crude oil inventories also dropped less than expected, and fell by 0.679 million barrels in the week ended November 27th, 2020, following a 0.754 million decrease in the previous period. Market expectations estimated a 2.358 million fall, according to the EIA Petroleum Status Report. Gold also hit a 1-week high consolidating the rebound from five-month lows of $1,764 and tested the resistance level of $1,850. Investors have been running back towards gold as a hedge against inflation, and because of a weaker dollar due to concerning levels of US debt.
WHATS UP
Energy and financials led the S&P 500 today and gained 3.2% and 1.1%, respectively.
Boeing led the Dow higher with a gain of 5.1%, while Salesforce lagged by nearly 9% after it confirmed its acquisition of messaging platform Slack for $27.7 billion.
Source: CNBC, TradingEconomics, Yahoo! Finance
