Jakarta, CNBC Indonesia – United States (US) stock exchange Wall Street recorded the highest record at the close of trading Tuesday (12/1/2020). This was triggered by investors who bet a corona virus vaccine (Covid-19) will be immediately available, so that the world economic recovery will quickly improve.
The Dow Jones Industrial Average rose 185.28 points, or 0.63%, to 29,823.92. The S&P 500 rose 40.82 points or 1.13% to 3,662.45. Meanwhile the Nasdaq Composite rose 156.37 points or 1.28% to 12,355.11. The three major stock indexes rose more than 10% compared to last November.
Investors are now focused on updates on multiple vaccine candidates and the start of global vaccine shipments as drug manufacturers submit documents for regulatory approval.
Pfizer Inc shares jumped nearly 3% after the drug maker and Germany’s BioNTech SE sought emergency approval of their vaccine candidate from European regulators.
The partners are competing with rival Moderna Inc, which has also applied for emergency approval from European regulators. Its shares are down nearly 8% from their record high the day before.
“There is optimism because we are seeing the news around the vaccine emerge. When we are looking for a health solution, we could be sitting on a circular spring of economic activity, but it will take a while to let go,” said Bill Northey, senior investment director at US Bank Wealth Management. in Minneapolis, quoted by Reuters.
Previously, global equities got a boost from data showing Chinese factory activity in November picked up at the fastest pace in a decade. Several other countries also reported a sharp increase in their manufacturing activity.
US data also showed the recovery in manufacturing activity lost momentum in November.
Investors also focused on statements by US Treasury Secretary Steve Mnuchin and Federal Reserve Chair Jerome Powell on the Senate Banking Committee, in which they agreed on the need for more help for small businesses.
Meanwhile, a bipartisan group of US lawmakers unveiled a $ 908 billion Covid-19 aid bill that aims to break a months-long standoff between Democrats and Republicans over new emergency relief for small businesses, unemployed, airlines and other industries during the pandemic. .
Zoom Video Communications Inc shares slumped 15% after warning its gross margins will remain under pressure going into 2021.
Tesla Inc rose 3% after the S&P 500 Index and the Dow Jones said it would add one of Wall Street’s most valuable companies to the S&P 500 index at once on December 21, rather than in two stages.
Micron Technology Inc shares rose 4.7% as the chip maker increased its revenue, gross margin and revenue forecast for the first quarter.
The S&P 500 posted 48 new highs in the last 52 weeks and no new lows; The Nasdaq Composite recorded 185 new highs and eight new lows. Volume on US exchanges was 13.5 billion shares, compared with an average of 11.5 billion over the last 20 trading days.
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