NASDAQ, S&P 500 Firmer, GameStop Dominating Headlines
Even as GameStop dominates headlines, a stock--pumped by retailers soaring over 15X, major indices, including S&P 500, are solid even though most US shares are generally heavy, trudging. The contraction could be because of several reasons. Some analysts worry that coronavirus vaccines might not roll out as fast, subsequently delaying the economy from opening up as initially expected, affecting the stock market.
The stock and indices market arehighly reliant on how fast normalcy resumes. This is directly dependent on the Biden administration rails on implementing what he promised on his campaign trails. However, depending on this success, the stock market and indices would likely experience a mini-boom as more people are vaccinated. There is a promise of normalcy, allowing people to travel and spend more on top of the FED's economy priming. California may lift their stay-at-home order allowing businesses to open up. Still, the stock market rally won't be at full throttle since bonds are also rallying. Their rally often is at the expense of important stocks that decline as more investors prefer US treasuries' safety.
Impact on Indices:
Bullish. Several factors influence the stock and indices market. Coronavirus aside, traders are watching currencies as well as bonds. A strengthening USD means external demand for US equities and, thus, a possible rally.
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