The U.S. stock market advanced in the first trading week of February, and Wall Street’s three main indexes surged, boosted by optimism over corporate earnings, stimulus talks, and progress on vaccine rollouts. As more people get vaccinated, economic activities will start to recover while the further stimulus expectations also helped improve the market sentiment.
The S&P 500 and the Nasdaq had their biggest weekly percentage gains since early November and continue to move in a bull market. According to the latest news, Congress will allow Biden’s $1.9T stimulus plan to pass without Republican votes.
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The package includes more than $400 billion to directly combat the pandemic, $350 billion for local governments, and $1,400 direct payments to individuals. “During this pandemic, millions of Americans, through no fault of their own, have lost the dignity and respect that comes with a job and a paycheck,” said President Biden.
Jared Bernstein said that the entire council is in agreement with the size of the economic stimulus plan, and it is clear that there is a need for urgent and sustained action. “The White House economic team is complete in consensus on the urgency of the need for this American Rescue Plan and in complete solidarity on the calibration of this plan – that it’s of the magnitude to meet the challenges we face,” said Jared Bernstein from the White House Council of Economic Advisers.
Positive corporate earnings have also helped investor optimism, and many S&P 500 companies are on track to post earnings growth instead of a decline as initially expected.
S&P 500 up 4.65% on a weekly basis
For the week, S&P 500 (SPX) booked a 4.65% increase and closed at 3,886 points.
If the price jumps above 3,900 points, it would be a “buy “signal for the S&P 500, but if the price falls below 3,700 points, it would be a strong “sell” signal, and we have the open way to 3,500 points.
DJIA up 3.89% on a weekly basis
The Dow Jones Industrial Average (DJIA) advanced 3.89% for the week and closed at 31,148 points.
If the price jumps above 31,500 points, it would be a buy signal for Dow Jones Industrial Average (DJIA), and we have the open way to 32,000 resistance. On the other side, if the price falls below 30,000 points, it would be a firm “sell” signal, and the next target could be around 29,500 points.
Nasdaq Composite up 6.01% on a weekly basis
The Nasdaq Composite (COMP) advanced 6.01% on a weekly basis and closed at 13,856 points.
As long the price is above this trend line and 13,000 points, the Nasdaq Composite index remains in a bull market, and there is no indication of the trend reversal.
Wall Street’s three main indexes advanced in the first trading week of February as investors remain optimistic about the large U.S. stimulus package. Dow Jones rose 3.89% for the week, the S&P 500 4.65%, Nasdaq 6.01%, and all three indices remain in a bull market.