Jakarta, CNBC Indonesia – Stock exchanges in the United States (US) opened higher in trading Monday (17/8/2020), with the S&P 500 index finally touching a new record high.
The S&P 500 index rose 0.2% at the opening at 8:30 am local time (21:30 WIT), and 15 minutes later it increased to 12.47 points (+ 0.37%) to 3,394.46. Thus, the index surpassed its record high reached in February at the level of 3,393.52.
Meanwhile, the Nasdaq index rose 71.88 points (+ 0.65%) to 11,201.61 and the Dow Jones Industrial Average grew 24.67 points (+ 0.09%) to 27,869.58.
The increase in the benchmark index for US stock exchanges occurred amid releases of improved performance by listed companies. Some of the issuers that provide the good news include Home Depot and Walmart.
Tesla shares in the pre-open market jumped 5.5% to US $ 1,937. The company plans to split the nominal value of the shares (stock split) with a sense of 5: 1 this month.
However, the current rally is overshadowed by negative sentiment from the political realm. Republican Senate members plan to propose an aid program that includes US $ 10 billion in aid to the US Post Office, the report said NBC News on Monday night.
“The market is lacking a catalyst to help the market overcome resistance levels technically,” said Mark Hackett, Head of Investment Research at Nationwide, in his research report. CNBC International.
The S&P 500 Index has rocketed more than 50% from its lows in March amid massive fiscal stimulus to tackle Covid-19 and the better-than-expected performance of listed companies. The Nasdaq Index hit a new record high and shot up 24% throughout 2020.
But now the market is facing a political stalemate over the prospect of a new stimulus. Democrats and Republicans alike insist on defending their positions.
On the other hand, US and Chinese tensions heated up after US President Donald Trump on Monday imposed new restrictions on Huawei by banning the Chinese company from selling foreign chip manufacturers using US technology software.
CNBC INDONESIA RESEARCH TEAM
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