Global Market Square
The U.S. stock markets ended the session mostly lower except for the Nasdaq Composite, which closed higher. Investors’ hope that the U.S. Congress would put aside its differences to pass a stimulus bill has been wrong as the coronavirus case count rises along with the probability of further lockdown measures in a dozen states.
The glimmer of hope is that the Pfizer/BioNTech COVID-19 vaccine’s approval and distribution pushes investors to feel that the pandemic is slowly coming to a close.
However, some reports from Congress that the stimulus bill may be divided into two separate pieces of legislation is a sign of progress, raising hopes that funding may be approved before the end of the year. The bills are said to include:
1. A $748 billion package that would cover unemployment benefits and Paycheck Protection Program funding.
2. A $160 billion portion includes funding for state and local governments that has been the most significant point of contention between Republicans and Democrats.
While we feel cautiously optimistic about the vaccines, we recommend investors keep in mind that sustained volatility will occur as we near the year’s end.
As you can see, markets have zeroed in on the additional stimulus and the impact on the economic recovery from the Covid-19 surge.
Wall Street summary for Dec. 14, 2020:
- The Dow Jones Industrial Average closed at 29,861.55, down 184.82 points, or 0.62%
- The Standard & Poor’s 500 closed at 3,647.49, down 15.97 points, or 0.44%.
- The Nasdaq Composite Index closed at 12,377.87, up 62.17 points, or 0.5%.
- The Birling Capital Puerto Rico Stock Index closed at 1,993.46, down 40.36 points, or 1.98%.
- The U.S. Treasury 10-year note closed at 0.9%
- The U.S. Treasury 2-year note closed at 0.13%