US Stocks Close High … “Corona Vaccine Expectations Fall, Tech Stocks Bounce”


【Youth Daily】 The major indices of the New York Stock Exchange closed mixed taxes.

Business cycle inventories, which rose due to the anticipation of a new coronavirus infection vaccine (Corona 19), slowed, but tech inventories, which had been slow, rebounded. The Dow Jones 30 Industrial Average closed trading at 29397.63, down 23.29 points (0.08%) from the battlefield of the New York Stock Exchange (NYSE) on 11th (hereafter Eastern Time).

The Standard & Poor’s (S&P) 500 Index climbed 27.13 points (0.77%) from the battlefield to 3572.66, while the tech-oriented Nasdaq index rose 232.57 points (2 0.01%) to 11,786.43.

On this day, tech stocks rebounded 2.41% per sector. Industrial stocks fell 0.88%. The mayor has been paying attention to the results of the US presidential election and the spread of Corona 19. The general sentiment for risky assets has improved with the recent success of good news.

Democratic candidate Joe Biden was elected in the US presidential election, easing the uncertainties in the election. Since the powers of the White House and the Senate should be separated, the burden of regulation and tax increases has also been reduced.

In addition, Pfizer and Bioentech’s Corona 19 vaccine has shown excellent effects and expectations have also risen for a vaccine to be developed soon.

Cycle-sensitive stocks, which had been suppressed so far in anticipation of a rapid economic recovery next year due to vaccine development, etc., rose sharply this week.

On the other hand, the share price of the companies, which were ‘house evacuation’ reflective profit stocks such as the Zoom video conferencing app company, was weak. However, on this day, the stock prices of tech companies like Zoom and Amazon have rebounded, but the stock prices that are sensitive to the expectations of the anti-corona 19 vaccine like Boeing fell in reaction.

Boeing’s share price fell 3.5%, while Amazon rose 3.4%. Apple also increased by 3% and Zoom by around 10%.

Although the flow of funds from tech stocks to business cycles has been rapid due to optimism about vaccines, there is still an analysis that the stock price will not trend to the downside as the underlying strength of major tech companies is strong. .

Even as the Corona 19 vaccine is being developed, the fact that it will take a long time for universal vaccination has calmed the market. In particular, the current situation of Corona 19 is unusual.

According to the Wall Street Journal, the number of hospitalized patients for Corona 19 in the United States since the previous day reached 62,000,000, surpassing the peak of about 60,000 in April.

The average number of new confirmed cases per day is over 100,000. As the situation escalates, as the number of hospitalized patients increases, more areas are stepping up containment measures. New York Governor Andrew Cuomo announced today that the state-level bar and gym will be closed again starting Friday.

New York stock market pundits have predicted that there is a high possibility of good investment sentiment.

“We expect the market to be strong,” said Don Calgani, Mercer Advisor’s chief investment officer, “the market wanted a peaceful transfer of power, and I think it got it.”

He added: “Secondly, the mayor wants to surpass Corona 19 and Pfizer’s announcement was a big step forward for that,” he added.

The volatility index (VIX) on the Chicago Options Exchange (CBOE) fell 5.44% from the previous trading day to 23.45.

【Youth Daily = Reporter Kang Jeong-wook】


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