Jakarta, CNBC Indonesia – Stock exchanges in the United States (US) opened up in trading Tuesday (12/1/2020), amid the return to risk appetite (risk appetite) investors.
The Dow Jones Industrial Average jumped 322.5 points (+ 1.1%) at 8:30 am local time (21:30 WIT) and 15 minutes later it remained at 320.9 points to 29,959.57. The S&P 500 index rose 39.7 points (+ 1.1%) to 3,661.36 but the Nasdaq grew 106.6 points (+ 0.9%) to 12,305.34.
“December is likely to end strongly in 2020,” wrote Tom Lee, an analyst at Fundstrat Global Advisors, who recorded historical trade data and found that the S&P 500 index’s 10% rise in November will be followed by a rally in December.
During November, the Dow Jones jumped 11.9%, the S&P 500 grew 10.8% and the Nasdaq added 11.8%. The rally comes amid positive news about vaccines made by Pfizer and BioNtech which have begun to be registered with the European Drug Agency for conditional distribution permits.
The market is also optimistic that there will be good news in terms of fiscal and monetary policy, ahead of speeches by Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin to Congress this week.
Yesterday, Powell assessed that the US economy was in “extraordinary uncertainty” following the increase in Covid-19 cases both at home and abroad, which could trigger economic challenges in the coming months.
“The full economic recovery is in uncertainty so that people believe that it is safe to resume various activities,” he said.
The development of corona is also still the main focus, where there are nearly 14 million people with Covid-19 in the US which has resulted in 274,000 deaths. In New York, Governor Andrew Cuomo said it would implement an emergency care policy.
CNBC INDONESIA RESEARCH TEAM
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