Jakarta, CNBC Indonesia – Stock exchanges in the United States (US) opened into positive territory in trading Friday (27/11/2020), welcoming reduced political uncertainty amid the latest positive news about vaccines.
The Dow Jones Industrial Average jumped 73.8 points (+ 0.25%) at 8:30 am local time (21:30 WIT) and 25 minutes later to 40.9 points (+ 0.14%) to 29,913.34. The S&P 500 index rose 9 points (+ 0.25%) to 3,638.65 but the Nasdaq grew 89.1 points (+ 0.74%) to 12,183.53.
The Cboe Volatility Index (VIX), an index thought to show the level of anxiety of market participants, has fallen below 20, the first since February. This means that the level of market concern about the risk of investing in the stock market has decreased to pre-pandemic levels.
During the week, the Dow Jones, S&P 500 and Nasdaq compact rose at least 2%. All thanks to the Dow Jones and the S&P 500 which had touched new highs. Likewise the Russell 2000 small market cap stock index.
Retail stocks rose following the Black Friday discount event. Amazon shares rose 0.8%. Gap grew 0.8% and Walmart grew 0.4%.
“As cutting-edge health solutions get closer … we are starting to see market participation grow and rotate into sectors that have been depressed due to the pandemic,” said Bill Northey, Investment Director of US Bank Wealth Management, as quoted CNBC International.
As of today, the US stock exchange will operate for only half a day, closing at 13:00 local time. In general, global markets are under pressure after having strengthened significantly in the first days of this week.
The gains came after the Dow Jones passed its psychological record level of 30,000 on Tuesday. But on Wednesday, the Dow Jones index was corrected by profit taking (profit taking) ahead of the holidays on Thursday.
The positive sentiment of the stock comes from the beginning of the transition period from US President Donald Trump to President-elect Joe Biden. The market was also pleased with the news that Janet Yellen was elected Minister of Finance.
Biden said in his official address to introduce the new cabinet team that he would “restore America globally, both global leadership and moral leadership.”
US President Donald Trump has said he will leave the White House if the electoral vote is announced and Joe Biden wins. However, he still believes that there was fraud in the presidential election event yesterday even though no evidence was presented.
CNBC INDONESIA RESEARCH TEAM
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