Global Market Square
The U.S. stock market took a beating Thursday as the COVID-19 surge’s effect on the economy is beginning to show. The leading economic data show a slowdown. All eyes are focused on Congress to pass a new stimulus package urgently.
U.S. Treasury Secretary Steven Mnuchin offered a $916 billion proposal that includes payments to individuals and liability protections.
As most investors are hopeful for a deal to materialize before the year’s end, Democrats and Republicans should focus on the people who desperately need government aid.
On Friday, U.S. hospitals, including four hospitals in Puerto Rico, will begin to receive the Pfizer vaccine, which will provide some lift to the market and the economy. Only time will tell how fast the vaccine distribution will happen; however, we see strong growth for 2021.
On the economic data front, mortgage rates fell to a record low for the 14th time this year, providing a boost to refinancing activity. Another critical benchmark reported Thursday showed that mortgage refinancing applications rose 2% last week and are 89% higher from a year ago, showing the robust nature of the U.S. housing market.
Wall Street summary for December 9, 2020
- The Dow Jones Industrial Average closed at 30,068.81, down 105.07 points, or 0.35%
- The Standard & Poor’s 500 closed at 3,672.81, down 29.42 points, or 0.79%.
- The Nasdaq Composite Index closed at 12,338.95, down 243.82 points, or 1.94%.
- The Birling Capital Puerto Rico Stock Index closed at 2,031.17, down 11.83 points, or 0.58%.
- The U.S. Treasury 10-year note closed at 0.95%
- The U.S. Treasury 2-year note closed at 0.16%