23 January 2021
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The Dow plunges 179 points as investors worry, President Biden is forced to cut stimulus limits
Dow Friday’s close (22 Jan) fell 179 points amid concerns that President Joe Biden may cut the limit on the stimulus so it can pass Congress approval.
Investors are also concerned about the delays in the COVID-19 vaccination in the United States and the stock becoming expensive. After rising in support of the previous US presidency, the S&P 500’s Forward P / E ratio is now near its highest during the 2000 dot-com bubble.
The Dow Jones Industrial Average fell 179.03 points or -0.57% to close at 30,996.98 points, the S&P 500 fell 11.60 or -0.30% to close at 3,841.47 and the NASDAQ index. Increased 12.15 points or + 0.09% to close at a price of 13,543.06.
Many members of Congress, including Republicans and Democrats, have criticized. And questioned the necessity of President Biden’s $ 1.9 trillion stimulus package.
The stance by US members of Congress could pressure President Biden to reduce the amount of stimulus measures to be approved by the House of Representatives and the US Senate.
Investors are also watching whether President Biden will be able to vaccinate 100 million Americans within the first 100 days of his promised presidency. After the government of former President Donald. Trump has missed out on the goal of vaccinating 20 million Americans by 2020.
The US is now number 1 in the world in terms of COVID-19 cases. And the deceased More than 25 million people were infected and more than 420,000 died.
President Biden announced measures to contain the COVID-19 epidemic yesterday and signed ten special presidential directives to curb the epidemic in the United States. He will mobilize thousands of federal and medical personnel to support the COVID-19 vaccination. To the Americans
President Biden also enacted the Defense Production Act to speed up production of the COVID-19 vaccine. To ensure that PPE kits, a COVID monitoring kit will be produced. And adequate raw materials are allocated for vaccine production.
The wartime manufacturing law gives the US president the power to direct companies to produce what is important to national security. This will provide the United States with the raw materials necessary to produce the novel coronavirus vaccine.
At the same time, the market was concerned that Pfizer Inc. reduced the delivery of COVID-19 vaccine. To European countries will affect the US While governments in Europe have expressed frustration with the company, some countries such as Italy have threatened legal action. After Pfizer cuts COVID-19 deliveries by 50%
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