Global Market Square
The U.S. stock market rose sharply Wednesday following Tuesday’s Federal Reserve Monetary Policy Report to Congress. In his testimony, Fed Chairman Jay Powell stated that the economy’s path depends greatly on controlling the virus and a massive ramp-up in vaccinations.
Covid-19 continues to cause great hardship and is slowing the pace of economic activity and job creation, the Fed’s position is to maintain interest rates low until the U.S. reaches full employment.
The driving force of the market’s reversal: the rotation of stocks into those better positioned for the economic recovery and the value stocks, which have risen enormously.
The cruise ship industry is seeing robust gains, with Norwegian Cruise Line Holdings Ltd (NCLH) rising 8.67% and closing at $31.10 and Royal Caribbean Group (R.C.L.) rising 6.72% and closing at $96.10.
Also adding to improved investor sentiment, the F.D.A. said Johnson & Johnson’s single-shot vaccine is safe and effective.
On a positive economic development, the number of U.S. New Single-Family Houses Sold rose to 923,000, up from 885,000 last month, or a 4.29% increase, and from 774,000 one year ago, or 149,000 more.
Wall Street summary for February 24, 2021:
- The Dow Jones Industrial Average closed at 31,961.86, up 424.51 points, or 1.35%.
- The Standard & Poor’s 500 closed at 3,925.43, up 44.08 points, or 1.14%.
- The Nasdaq Composite Index closed at 13,597.97, up 132.77 points, or 0.99%.
- The Birling Capital Puerto Rico Stock Index closed at 2,234.61, up 47.70 points, or 2.18%.
- The U.S. Treasury 10-year note closed at 1.38%.
- The U.S. Treasury 2-year note closed at 0.12%.