Welcoming Trump’s Surprise, Dow Jones Opened Soaring 175 Points

Jakarta, CNBC Indonesia – The United States (US) stock exchange opened up in trading Wednesday (23/12/2020), prompted by the surprise of US President Donald Trump who signed a stimulus bill worth US $ 900 billion.

The Dow Jones Industrial Average added 175 points (+ 0.6%) at 8:30 a.m. local time (21:30 BST) and 20 minutes later to 200.1 points (+ 0.66%) to 30,399.97. The S&P 500 rose 12.08 points (+ 0.3%) to 3,699.34. The Nasdaq rose 89.2 points (+ 0.7%) to 12,893.96.

Apple shares led the Dow Jones gains, rallying nearly 2%. Technology and raw materials stocks were the sectors that posted the top rally in the S&P 500 index, gaining 0.9% and 0.8%, respectively.

Trump approved the US $ 2.3 trillion fiscal 2021 State Budget Law (UU). The US government was also spared from the temporary closure (shutdown) and the unemployed in the US are getting benefits again.

“The five pillars of the rally (federal stimulus, central bank stimulus, distribution of vaccines, unified government and two trough recession) are still there, the medium and long term outlook for stocks will still be positive until all five change,” said Tom Essaye, founder of The Seven Report as quoted CNBC International.

Previously, Trump refused to sign his signature because the nominal value was too small. Congress agreed on Direct Cash Assistance (BLT) worth US $ 600 while it wanted the figure of US $ 2,000. But faced with risks shutdown, Trump was also willing to sign the Act.

“I signed this law to re-provide unemployment benefits, stop house foreclosures, provide rent assistance, increase money for the Income Protection Program (PPP), re-employ airline employees, raise substantial funds for vaccine distribution, and much more,” Trump said in a statement. the official statement.

Last week, the S&P 500 index fell 0.2% after some investors realized their profits ahead of the long holiday. During the year, the index of 500 shares was up 14.6%. The Dow Jones Index advanced 0.1% last week with the current year’s rally of 5.8%. Nasdaq jumped 42.7% throughout 2020 following the action of hunting down technology stocks that were blessed at times.

However, there are still risks looming. Dr. Anthony Fauci on Sunday warned that there is an increase in Covid-19 infections after Christmas and New Year. The vaccines made by Pfizer and Moderna have so far been distributed to more than 1 million people.

CNBC INDONESIA RESEARCH TEAM

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