Wednesday, April 14, 2021

Global Market Square

By on December 15, 2020

The U.S. stock market ended Tuesday with substantial gains as investors are reacting positively to the U.S. Congress announcement that leaders from both parties would convene on a teleconference call to map out the way to a  stimulus funding agreement.  

Key leaders—from Federal Reserve Chairman Powell to the Oracle of Omaha, Warren Buffet—have stressed that the United States needs a new round of stimulus funding to avert an economic meltdown, considering that the coronavirus pandemic is surging and forcing all kinds of lockdown measures to stop the spread. More than 33% of small and midsize businesses have closed, and more are running out of capital and options to survive.

The vaccination of healthcare workers began Tuesday in the United States, including in Puerto Rico. The Moderna vaccine is expected to be approved by the end of the week after the FDA meets Thursday. The vaccines’ distribution will help economic growth improve and pave the way for a consistent economic recovery.

On the economic front, U.S. industrial production continued to recover in November, showing improvement, but remains 5% below February levels.

On Wednesday, we expect the much anticipated retail sales numbers as well as the Fed interest rate announcement. There is a 90% plus consensus that rates will remain unchanged until August 2021.

Wall Street summary for December 15, 2020:

  • The Dow Jones Industrial Average closed at 30,199.31, up 337.76 points, or 1.13%
  • The Standard & Poor’s 500 closed at 3,694.68, up 47.78 points, or 1.29%.
  • The Nasdaq Composite Index closed at 12,595.06, up 155.02 points, or 1.25%.
  • The Birling Capital Puerto Rico Stock Index closed at 1,999.64, up 6.19 points, or 0.31%.
  • The U.S. Treasury 10-year note closed at 0.92%
  • The U.S. Treasury 2-year note closed at 0.11%

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