Tuesday's Market Recap - Dow Soars On Covid-19 Vaccinations And Fiscal Stimulus Optimism.
- Dec 15, 2020
- 2 min read
What is The Premarket Telling Us?
Stock futures are a moderate sea of green at this hour. Dow futures are up 184 points, Nasdaq futures up 70 points, and S&P futures up 26 points, Major Asian markets were mostly lower in their sessions.
On The Bond Desk:
The US 10 Year Bond Yield at 0.89%, unchanged from the last close.
Currency Desk:
Eurodollar:1.21
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $47.21/barrel, up 0.47%.
On the Earnings Calendar:
None to report
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets closed with modest losses. Japan (Nikkei 225) down 0.17%, Shanghai down 0.06%, Hong Kong (Hang Seng) down 0.69%.
Major European markets ended mixed. German (DAX) gained 1.06%, France CAC 40 up 0.04%, London FTSE 100 down 0.28%.
Market And Sector Dynamics
Markets started the trading session with investors in a risk-on mode. The Dow surged 162 points, Nasdaq rose 101 points, and the S&P gained 25 points. WTI crude oil started modestly higher at $47.21/barrel, up 0.47%, and the US 10 Year Bond was at 0.911%. A likely stimulus proposal coming out of Congress, and the beginning of actual Covid-19 vaccinations across the US, is helping to propel stocks higher.
Stocks surged progressively higher throughout the session, with the Dow up 370 points, the intra-day high, around 2:30 PM. The markets held on to most of those gains into the close.
The Federal Reserve Open Market Committee (FOMC) began its two-day meeting today and will announce its policy on interest rates tomorrow afternoon, around, 2:00 PM.
In today's rally, all eleven S&P sectors ended the day with sharp gains, led by Utilities, Energy, Basic Materials, Real Estate, Financials, Technology, Industrials, Healthcare, Consumer Discretionary, Communication Services, and Consumer Staples.
Factors Influencing Today's Market
Covid-19 vaccinations are now taking place across the country.
Optimism about fiscal stimulus from the US Congress is looking very favorable in Washington this week.
Major Asian markets were mildly lower, while European stocks were mixed.
FOMC will announce its policy decision on interest rates tomorrow. No change is expected.
US 10 Year Bond Yield closed the day at 0.911%, up 1.47%.
WTI crude oil closed today at $47.62/barrel, up 1.34%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, markets were higher. The Dow gained 337.76 points, Nasdaq gained 155.02 points, and the S&P gained 47.13 points. Total NYSE volume traded, a moderate 4.44 billion shares. Advancing shares outpaced Declining shares better than 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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