empty
11.02.2021 12:56 PM
US stocks ended Wednesday's trade controversially

This image is no longer relevant

US stocks did not show uniform dynamics at the close of trading on Wednesday. Major stock indexes were mixed, and some demonstrate a significant increase allowing to achieve maximum results.

The Dow Jones Industrial Average increased by 0.2% or 61.97 points, to 31,437.8 points, becoming its new maximum value.

The S&P 500 index, on the contrary, slightly reduced its positions by 0.03% or 1.25 points, to 3,909.88 points.

The NASDAQ Composite index was also negative which sank 0.25% or 35.16 points, which sent it to the area of 13,972.53 points.

Market participants, on Wednesday, began to evaluate a new batch of statistical data as well as corporate reports of large companies, which is gradually presented in the news. It should be noted that both data were not as depressing as previously expected.

In addition, investors were interested in the speech of the head of the US Federal Reserve Jerome Powell, which was scheduled at the conference of the Economic Club in New York.

The level of consumer prices in the country in the first month of 2021 increased by 1.4% compared to the same indicator recorded a year earlier. Recall that the same increase in the indicator was noted in December 2020. Analysts' preliminary forecasts expect a growth of 1.5%. So the real data left hopes for the best in the future.

The level of the budget deficit in America in January 2021 reached $163 billion, while a year earlier this value was only $32.6 billion. The official data also did not coincide with preliminary forecasts, which assumed growth of no more than $150 billion.

Fed chair Powell's speech was mainly related to the country's labor market. The regulator intends to do everything necessary to recover jobs that were lost amid the crisis caused by the coronavirus pandemic. Moreover, the regulator is not bothered by the inflationary risks, which will inevitably appear in the future and have already begun to overtake the economy at present. Powell recalled that inflation has been much lower and more stable over the past three decades compared to the previous level, which is not yet enough to cause a problem.

An important issue that all market participants are waiting for, without exception, is still the expanded program of financial incentives in the United States of America. A large-scale injection into the economy would be a good help to get out of the crisis, but at the same time, it would make the national currency weaker and increase inflation risks.

Among other things, the development in the mass vaccinations and the reduction in the number of COVID-19 infections in the country are encouraging for investors. This raises thoughts that the state may very soon successfully overcome the crisis it is currently facing.

There is another event that is not directly related to the economy, but attracts the attention of investors. This is the impeachment proceedings of former US President Donald Trump. This issue is particularly important to Trump's ardent opponents, who cannot calm down and leave this issue unresolved. However, experts say the Senate's decision on this matter should not affect stocks and other markets at all. In fact, this is a purely political issue and has nothing to do with the current state of affairs in the country.

Maria Shablon,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

Gold falls, stocks plunge: What India, Germany and the Fed have in common

Stocks fall on lack of tariff deals ahead of Fed policy decision Gold falls on hopes for US-China trade talks; UK, India reach trade deal after 3-year talks Germany's Merz

Thomas Frank 07:05 2025-05-07 UTC+2

US Market News Digest for May 6, 2025

The US stock market opened the week in turmoil. Berkshire Hathaway shares were trading under pressure after Warren Buffett had Stepped down as CEO. Investors are concerned about the company's

Ekaterina Kiseleva 13:52 2025-05-06 UTC+2

$9 Billion for Skechers, falling indices, and surge in Asian stocks

Berkshire Hathaway slips after Warren Buffett steps down as CEO. The US services sector shows growth in April. Skechers surges following a $9 billion privatization deal. Investors await trade agreements

13:26 2025-05-06 UTC+2

Skechers' $9B, Indexes Sink, Asia Surges: A Day of Change

Berkshire Hathaway Slips After Buffett Steps Down as CEO U.S. Services Sector Rising in April Skechers Jumps After $9B Privatization Deal Investors Await U.S.-Partner Trade Deals Asian Currencies in Focus

Thomas Frank 07:41 2025-05-06 UTC+2

US Market News Digest for March 17

US stock indexes, including the S&P 500 and Nasdaq, ended the week confidently in positive territory. This was largely due to encouraging developments in trade talks with China and resilient

Ekaterina Kiseleva 13:32 2025-05-05 UTC+2

Europe on pause: What's behind the stock market plunge and Trump's unexpected activity

European stocks fell slightly; STOXX 600 - minus 0.1%, France - minus 0.3% Investors await data on US-China talks, earnings and Fed decision Trump: 100% tariffs on foreign films, Alcatraz

Thomas Frank 11:34 2025-05-05 UTC+2

US Market News Digest for May 2

US equity indices continue to climb despite lingering economic uncertainty. Investor optimism is being driven by expectations of progress in trade talks between the US and China. Nevertheless, ongoing economic

Ekaterina Kiseleva 13:14 2025-05-02 UTC+2

US Market News Digest for May 1

The US stock market weathered notable volatility in April, but a successful rally helped major indices recoup losses. Despite data showing a 0.3% contraction in US GDP for the first

Ekaterina Kiseleva 11:54 2025-05-01 UTC+2

Feast in the Storm: S&P 500 Celebrates Gains as Dollar Drowns and China Weakens

S&P 500 Posts Sixth Straight Day of Gains Oil Falls More Than 1% China Manufacturing Activity Plummets as Trump Tariffs Continue to Squeeze Dollar Set for Worst Month

Thomas Frank 12:09 2025-04-30 UTC+2

US Market News Digest for April 30

US stock indices remain on a positive trajectory, but market pressure has intensified due to a sharp drop in Super Micro shares and the upcoming earnings reports from tech heavyweights

Ekaterina Kiseleva 11:13 2025-04-30 UTC+2
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.