empty
03.02.2021 12:55 PM
US stocks target records again

This image is no longer relevant

US stock markets saw a significant rise on Tuesday. The major stock indexes have been demonstrating good growth for the second trading session in a row, which gives hope for further positive dynamics. The reason for this confidence is the news of a significant breakthrough in vaccination. Many of the problems associated with this have been almost completely resolved, which indicates that the process will gain momentum soon.

The Dow Jones Industrial Average was able to rise 1.57% or 474.57 points, to 30,687.48 points.

The S&P 500 Index jumped 1.39% or 52.45 points. Its level at the close of Tuesday's trading amounted to 3,826.31 points.

The NASDAQ Composite Index increased by 1.56% or 209.38 points, which sent it to 13,612.78 points.

Investors are especially encouraged by the news that mass vaccination in the United States is gradually gaining momentum. According to statistics, almost 26 million people have already been vaccinated with the first dose of the drug, and 6 million people have supplied the second part of the vaccine. This suggests that the pace is growing rapidly, although it has not yet been possible to cope with the increase in coronavirus infection.

Since the beginning of the pandemic, more than 26.2 million cases have already been identified in the US, with more than 443,000 recorded deaths. These are, of course, considerable numbers, which cause some concern, but progress in vaccination, according to experts, can turn the tide.

Such a significant rise in the major US stock indexes coincided with the decline in the value of securities of certain companies in the gaming sector. In particular, the shares of the gaming store GameStop Corp. slipped significantly, following its notable rise last week. GameStop failed to consolidate their success: on Monday and Tuesday, they dropped by almost 31% and 60%, respectively.

The negative in the gaming sector is primarily associated with the rapid outflow of short positions, which were massively closed within one day. At the same time, some analysts argue that this is all a continuation of the struggle that retail investors and hedge funds began last week.

Also, stock markets are showing signs of recovery amid the emerging stability with the expansion of the so-called "soap" bubble in the retail investment sector. Fears that it might burst are gradually leveled, which means that the work of market participants is becoming more confident.

The new expanded financial assistance program in the United States, which has not yet been written off, continues to provide additional hope. An active discussion of its implementation continues, which means that the final positive decision is not far off. At least two bitter parties - Democrats and Republicans - have already prepared a joint budget resolution, which is the first step towards deciding on the stimulus package. Now there is every chance that the entire package of measures worth $ 1.9 trillion will be ratified. This requires only a majority of votes.

Recall that the Republican Party tried to push its stimulus package totaling $618 billion to the Senate, but this amount seemed scanty to President Joe Biden and Treasury Secretary Janet Yellen. These measures are clearly not enough to restore stability to the American economy and fully cope with the crisis that arose against the backdrop of the coronavirus pandemic.

An additional signal for growth in US stock markets was corporate news. The statistics that are gradually coming to the press indicate an improvement in the state of affairs and financial stabilization in many large companies in the country, regardless of the sector of activity.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Boeing climbs, Best Buy falls as investors rebalance across sectors

Best Buy shares fell after the company cut its full-year sales and earnings forecasts. Boeing, on the other hand, gained ground as its CEO announced plans to ramp up production

13:49 2025-05-30 UTC+2

US Market News Digest for May 30

The S&P 500 opened the session on a positive note but soon reversed course after officials clarified that previously overturned tariffs would remain in place pending the outcome

Ekaterina Kiseleva 12:20 2025-05-30 UTC+2

Boeing Gains, Best Buy Falls: Why Investors Are Betting on Different Assets

Best Buy Falls After Full-Year Sales, Profit Outlook Shrink Boeing Gains as CEO Looks to Boost 737 MAX Production Japan's Nikkei Lagging as Yen Strengthens on Safe Haven Demand Indices

Thomas Frank 10:10 2025-05-30 UTC+2

US Market News Digest for May 29

Markets reacted to a US Court of International Trade ruling that found the Trump administration's tariff actions exceeded its authority. The decision has introduced fresh uncertainty for the S&P

Ekaterina Kiseleva 11:15 2025-05-29 UTC+2

Stock storm: Nvidia soars, Dow falls, court knocks down Trump tariffs

Nvidia shares up 5% after close; co reports quarterly results Dick's Sporting Goods rises after Q1 results beat expectations US trade court blocks Trump tariffs European stocks rise

Thomas Frank 10:49 2025-05-29 UTC+2

From Nvidia to Xiaomi: What's Driving Stock Market Growth and Decline Today

Indices Rising: Dow 1.78%, S&P 500 2.05%, Nasdaq 2.47% Consumer Confidence Recovers in May Temu Parent PDD Holdings Falls on Quarterly Revenue Slip Chinese Xiaomi Shares Set to Rise 2.3%

Thomas Frank 12:06 2025-05-28 UTC+2

Whoever doesn't risk a recession doesn't reduce the national debt? Trader's calendar on May 29–31

To be at the center of global attention and to "shape the planet's destiny" — that's what Donald Trump enjoys most. For him, it's essential to constantly generate headlines

Svetlana Radchenko 11:47 2025-05-28 UTC+2

US Market News Digest for May 28

The S&P 500 index has broken through the key 5,908 level, signaling the end of its recent correction and opening the door to further upside. A break above the resistance

Ekaterina Kiseleva 11:25 2025-05-28 UTC+2

US Market News Digest for May 27

US President Donald Trump announced a 50% tariff on imports from the EU, yet financial markets responded with restraint. Investors are increasingly adopting a "threat and retreat" strategy, buying stocks

Ekaterina Kiseleva 11:54 2025-05-27 UTC+2

Nvidia on the agenda: markets await quarterly report, dollar nears fifth straight monthly decline

Stock markets showed mixed dynamics on Tuesday after Donald Trump unexpectedly postponed the introduction of the promised 50% tariffs on goods from the European Union. The move only increased uncertainty

Thomas Frank 11:31 2025-05-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.