US equity benchmarks posted modest gains on Friday as the stock market tried to stop a three-day losing streak for the S&P 500 and Nasdaq Composite. The actions have been supported by the prospect of another round of fiscal stimulus from Washington, easy money policies from the Federal Reserve, and the beginning of a recovery from the COVID-19 pandemic as vaccines are rolled out, but the rise of US bond yields has risen. questions about valuations. How are the equity benchmarks performing? The Dow Jones Industrial Average DJIA, + 0.05% was up 69.16 points, or 0.2%, to 31,562.50. The S&P 500 SPX Index, -0.17%, gained 1.66 points, or less than 0.1%, to 3,915.63. The Nasdaq COMP Composite Index, + 0.02%, was up 31.01 points, or 0.2%, at 13,896.36. On Thursday, the Dow snapped a record winning streak, while the Nasdaq Composite and the S&P 500 posted their third straight decline, marking the longest losing streak for the Nasdaq since October and the longest losing streak for the Dow since the four-session streak ended. December 14th.
For the week, the Dow is targeting a weekly gain of around 0.3%, the S&P 500 is on track for a 0.5% weekly drop, while the Nasdaq is on track for a 1.4% weekly drift, based on the close. from Thursday. What drives the market? Weakness in the labor market and concerns about rising bond yields have put pressure on the broader stock market this week, especially after a surprising increase in the number of Americans seeking unemployment benefits in recent years. data that weighed on the prospects. Still, market participants have been waiting for increased government spending to help avert the possibility of a relapse of the weakness of the COVID pandemic, with negotiations underway in Congress over the $ 1.9 trillion aid package. from the Biden administration. During a CNBC interview Thursday night, US Treasury Secretary Janet Yellen advocated for more aid for Americans rather than less, saying the risks of doing too little outweighed those of doing too much. “We think it‘s very important to have a big package that addresses the pain this has caused: 15 million Americans behind on rent, 24 million adults and 12 million children who don’t have enough to eat, the little ones companies fail, “Yellen said. CNBC. The House of Representatives will try to pass a $ 1.9 trillion coronavirus relief plan before the end of February, House Speaker Nancy Pelosi said Thursday. There are also growing expectations that the launch of the coronavirus vaccine will fuel economic recovery in the second half of 2021. The United States averaged 72,831 new cases per day last week, 44% less than the average two weeks ago, while than 59.1 million vaccines so far. doses have been administered to approximately 17.8% of the population. However, optimism around a strong economic rebound has underpinned a surge in US Treasury yields as investors ditch government debt and increase their position in assets that could perform well in a environment called reflationary. The 10-year Treasury bond TMUBMUSD10Y, 1.342% was yielding around 1.35%, compared to 1.199% at the end of last week. The Federal Reserve has pledged to keep benchmark interest rates at or near 0% for the foreseeable future as the economy grapples with the impact of the epidemic, but some investors fear that rapidly rising rates could affect prices. central bank efforts. Others are more optimistic and note that financial conditions remain weak. “In terms of interest rate movement, it‘s not something we need to worry about when rates are as low as they are now,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, in an interview. “Certainly there is a point where that becomes a problem for risk assets, especially if inflation starts to pick up to 3%,” Gokhman said, but he did not anticipate that inflation would rise that much. Read: Complacent Stock Market Investors Underestimate Danger of Big US Dollar Fall, Veteran Currency Observer Warns On Friday, a quick read of the IHS Markit Manufacturing & Services Purchasing Managers Index rose to 58.8 in February from 58.7 in the prior month, marking the strongest reading in nearly six years and suggesting that parts of the economic recovery are beginning to accelerate as COVID-19 cases recede. In other economic reports, existing US home sales rose 0.6% to a rate of 6.69 million in January. What actions are in focus? Shares of Deere & Co. DE rose 10.5% on Friday, after the maker of construction, agricultural and lawn care equipment reported large earnings and revenue for the first fiscal quarter, citing “the improving conditions “in the agricultural and construction sectors, and provided an optimistic outlook for the whole year. Six Flags Entertainment Corp. SIX said it was preparing to open all of its parks for the 2021 season, although reopening dates are subject to change based on local and federal guidelines related to the COVID-19 pandemic. The shares were up 4.9%. How are the assets doing? The yield on the 10-year Treasury TMUBMUSD10Y gained 5.8 basis points to around 1.345% on Friday, putting it on its way to its steepest yield move in weeks. Bond prices move in the opposite direction to yields. The DXY US dollar ICE index, a measure of the currency against a basket of six major rivals, was down 0.2% and headed for a 0.3% weekly drop. Oil futures fell as power disruptions continued across the country, with the US benchmark CL.1 index dropping 48 cents, or 0.8%, to trade at $ 60.05 last month. barrel on the New York Mercantile Exchange. GC00 gold futures were up $ 2.40, or 0.1%, to close at $ 1,777.40 an ounce, and prices for the most active contract were down 2.5% for the week. The pan-European Stoxx 600 SXXP index gained 0.7% and London’s FTSE 100 stock index, UKX, added 0.1%, even as GBPUSD + 0.26% broke a psychological level, changing hands. at $ 1.40 for the first time since 2018. Markets in Hong Kong, the HSI closed 0.2% higher, while Japan’s Nikkei 225 NIK Index lost 0.7%. China’s Shanghai SHCOMP Composite Index ended 0.6% higher on Friday, while the CSI 300 000 300 rallied 0.2% to end the week.