Jakarta, CNBC Indonesia – Stock exchanges in the United States (US) opened red in trading Wednesday (2/12/2020), following a new stimulus plan in the Senate, while it is feared that a trade war will continue under the leadership of a new president.
The Dow Jones Industrial Average collapsed 175.2 points (-0.6%) at 8:30 a.m. local time (21:30 WIT) and a 25 minute interval improved to 86.2 points (-0.29%) to 29,737, 69. The S&P 500 index dipped 7.45 points (-0.2%) to 3,655 but the Nasdaq was minus 102.2 points (-0.83%) to 12,252.94.
Britain on Wednesday became the first country in the world to allow the use of a vaccine produced by Pfizer-BioNTech, and will be available on the market next week. “The start of the Covid-19 vaccination is approaching, strengthening the direction of ‘buying in times of correction’,” said Jim Paulsen, chief investment planner at Leuthold Group, as quoted CNBC International.
The Dow Jones Index yesterday jumped 185 points, supported by the strengthening of Apple shares which reached 3% in a day. The S&P 500 index grew 1.13% to touch a record high. The Nasdaq index also set a new record of 1.3%.
Positive sentiment had emerged from the State of Sam which planned to approve a stimulus package worth US $ 908 billion, but Senate chairman Mitch McConnell refused. Investors still hope that a second stimulus package will emerge.
However, President-elect Joe Biden’s statement that his party would not rush to lift the tariffs imposed by the Donald Trump administration on imported products from China made the market nervous that the effects of the trade war would still be long.
The market is also likely to be disappointed to see the ADP version of private payrolls data which rose only 307,000 in November, worse than October’s position of 365,000. The achievement also fell short of economists’ expectations in a Dow Jones poll which estimated the 475,000 people.
Mnuchin also called on Congress to authorize new aid for restaurant businesses worth US $ 300 billion to help deal with the effects of the pandemic over the winter.
CNBC INDONESIA RESEARCH TEAM
(ags/ags)
– .
