Tuesday, October 26, 2021

Global Market Square

By on December 22, 2020

Bond Market Debt Rises to $ 2.5 Trillion, while US GDP Rises 33.40%, but Wall Street Closes with Mixed Results

The U.S. stock markets finished the trading day with mixed results; not even the final vote of the $900 billion COVID-19 Stimulus bill was able to sway the negative investor sentiment. Investors are busy digesting another set of news like the debt load of more than $2.5 trillion that U.S. companies have borrowed in the bond market during 2020.

The COVID-19 has primarily driven the increase in lending activity, pushing investment-grade companies and high yield companies to show increased leverage ratios that have surpassed 2019 levels. 

Some key benchmarks reported today,

  • U.S. Real gross domestic product (G.D.P.) increased at an annual rate of 33.4% in the third quarter of 2020, compared to -31.40% last quarter.
  • U.S. Existing Home Sales fell to 6.69 million, down from 6.86 million last month and but it is still higher than the 5.32 million one year ago. 
  • U.S. Personal Savings Rate fell to 16.00%, compared to 26.00% last quarter; however, it is still higher than the 7.20% reported in the previous year. 

Wall Street summary for December 22, 2020,

  • The Dow Jones Industrial Average closed 30,015.94, down 200.94 points, or 0.67%
  • The Standard & Poor’s 500 closed at 3,687.26, down 7.66 points or 0.21%.
  • The Nasdaq Composite Index closed at 12,807.92, up 65.40 points, or 0.51%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,016.49, down 23.50 points, or 1.15%.
  • The U.S. Treasury 10-year note closed at 0.93%
  • The U.S. Treasury 2-year note closed at 0.13%

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