empty
30.12.2020 01:48 PM
Stocks in the US began to retreat, while Europe went multidirectional on the eve of the holidays

This image is no longer relevant

The US stock exchanges underwent a contraction on Tuesday. The major stock indexes showed a pullback from their historical maximum values, which they managed to reach the day before.

The Dow Jones Industrial Average fell 0.22% or 68.3 points. Its current level was 30,335. 67 points.

The S&P 500 index fell similarly by 0.22% or 8.32 points, which moved it to the area of 3,727. 04 points.

The NASDAQ Composite index lost 0.38% or 49.2 points. Its current level began to consolidate at 12,850. 22 points.

According to the latest data, a bill increasing direct payments to American citizens as aid against the background of the impact of coronavirus infection was blocked by the Republican majority leader in the Senate. This was a completely predictable decision, which analysts had warned about in advance. On Sunday, US President Donald Trump signed the draft budget for the year 2021 with the condition that the amount of payments will be revised from $600 to $2,000. However, after a positive vote in the House of Representatives, the bill again faced global problems that will most likely not be resolved quickly.

In addition, there is an active discussion on the issue of extending the program to support small and medium-sized businesses in the country. On Tuesday, the Department of Treasury and the Federal Reserve have already decided to extend it until January 8, 2021. The previous term of the program ended on December 31, 2020. Of course, this measure slightly improved the mood of market participants, but this is not enough for sustained growth to continue.

The main wave of positive news came from the signing of the budget for 2021, which took place last Sunday. This event has also almost exhausted itself and can no longer provide significant support to the markets, even though the budget payments include a package of assistance totaling $900 billion.

Note that under the influence of certain factors, which, in particular, include mass vaccination, ratification of fiscal incentives, soft monetary policy, the stock market is unlikely to lose hope for the future. Investors have no great reason to be nervous, so a global reduction should not be expected. Nevertheless, a minor negative correction is necessary. But don't take it too seriously.

One of the most problematic areas is still the deteriorating epidemiological situation in the United States. The increase in new cases of infection is recorded every day, and its pace is constantly increasing, which makes it doubtful that the economy will be able to move to a sustainable recovery in the near future. Over the past week alone, more than 184,000 new coronavirus infections have been detected in America every day.

Meanwhile, European stock exchanges did not record any significant dynamics on Wednesday morning. The major stock indexes are in no hurry to change and show almost no significant movement. First of all, market participants are trying to assess the situation around the spread of coronavirus infection, including a new, more dangerous strain detected in the UK.

Another important development was the approval of another COVID-19 vaccine developed by AstraZeneca. The UK plans to start using it early next month.

In addition, the signing of a post-Brexit trade agreement between Brussels and London becomes an exciting topic. The main agreements have been reached, and three documents were already ratified on Tuesday.

The general index of large enterprises of the European region STOXX Europe 600 gained 0.2% and moved to the level of 402.4 points.

The UK FTSE 100 index gained 0.19%. France's CAC 40 index rose 0.11%. Italy's FTSE MIB index added 0.15%. Germany's DAX index slipped slightly by 0.07%. Spain's IBEX 35 index followed suit and fell 0.04%.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

$10 Billion: The Price of Mistakes? J&J Back in Legal Storm

Balance Sheets Survive Day Ahead of Trump Tariff Event Airlines Slip After Jefferies Downgrades Forward J&J Slips After Judge Rejects $10 Billion Baby Powder Settlement Big Gains for Recent

Thomas Frank 08:02 2025-04-02 UTC+2

Q1 2025: Markets witness biggest rate drop since 2022

S&P, Nasdaq post worst month since December 2022 Biggest quarterly interest rate drop: S&P since Q3 2022, Nasdaq Q2 2022 Trump tariff uncertainty weighs on markets in Q1 Trump

Thomas Frank 12:03 2025-04-01 UTC+2

US Market News Digest for April 1

US stock indices closed the trading session with mixed results: the S&P 500 rose by 0.55%, while the Nasdaq 100 lost 0.14%. The reason for this uncertainty is the potential

Ekaterina Kiseleva 11:37 2025-04-01 UTC+2

Gold shines in crisis: best quarter since 1986 amid global turmoil

The Nikkei drops 4% and Nasdaq futures fall 1.4%. Trump signals US tariffs will target all countries. Gold posts its best quarter since 1986, while the dollar heads

12:51 2025-03-31 UTC+2

US Market News Digest for March 31

The US market kicked off the week with a broad-based sell-off, driven by rising talk of retaliatory trade tariffs and deteriorating consumer confidence. Investors are bailing out of stocks

Irina Maksimova 12:16 2025-03-31 UTC+2

Gold: The New Crisis King? Best Quarter Since 1986 Amid Global Turmoil

Nikkei Falls 4%, Nasdaq Futures Fall 1.4% Trump Says U.S. Tariffs Will Apply to Every Country Gold Has Best Quarter Since 1986 Dollar Heading for Worst First Quarter Since Global

Thomas Frank 09:35 2025-03-31 UTC+2

Trump pulls strings — stock market sinks in response

Auto stocks tumble after Trump's tariff strike. Advanced Micro Devices slips. Jobless claims rise to 224,000. Dollar strengthens against Canadian dollar, Mexican peso. S&P 500 -0.33%, Nasdaq -0.53%, Dow -0.37%

11:46 2025-03-28 UTC+2

US Market News Digest for March 28

The White House imposed 25% tariffs on automobiles and parts, triggering a sell-off in the auto manufacturing sector and broad declines in major stock indices. The Dow Jones, S&P

Irina Maksimova 11:24 2025-03-28 UTC+2

Trump Pulls Strings, Stock Market Reacts With Crash

Auto Stocks Fall After Trump's Latest Tariff Blow Advanced Micro Devices Falls After Brokerage Downgrade Weekly Jobless Claims Total 224,000 Dollar Rises Against Canadian Dollar, Mexican Peso S&P 500 -0.33%

Thomas Frank 07:36 2025-03-28 UTC+2

New Tariffs on Cars: How They Will Hit the Stock Market and Automakers

The U.S. stock market faced pressure after 25% tariffs on imported cars were announced. President Donald Trump signed an executive order introducing new duties on foreign-manufactured automobiles starting this April

Ekaterina Kiseleva 23:44 2025-03-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.