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Wall Street sets new highs in hopes of more fiscal stimulus

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Wall street sets new highs in hopes of more fiscal incentives. Both the S&P 500 and the Nasdaq they set records this Wednesday, and they have started the session this Thursday touching new record levels. Above all, the annual revaluation of the technology index stands out, exceeding 41% to date. The main stock exchanges of the New York Stock Exchange are trading with increases of 0.5% on average.

Investors had this Thursday the reference of the Federal Reserve. The US central bank kept its asset purchase program unchanged, in line with forecasts, adding that it will continue until "until substantial economic progress".

The Fed will continue to buy $ 120 billion a month in assets until I appreciate that they have been made "substantial progress" towards its goals of full employment and price stability.

For his part, the president of the organization, Jerome powell, has made its strongest (almost desperate) request to Congress to pass "already" a new package of fiscal and economic stimuli.

"Tax aid is already needed because the next few months are going to be the hardest. With the arrival of the vaccine, we expect the economy to recover very strongly in the second semester and for people to return to work, "he said.

On the coronavirus pandemic, which is causing records of infections and deaths in the US, the FDA (health regulator) plans to approve Moderna's vaccine against Covid-19 this Thursday.

NEGOTIATIONS CONTINUE IN WASHINGTON

The possibility of Republicans and Democrats reaching an agreement on the new aid package continues to attract investors' attention. The latest information indicates a plan of $ 900 billion, which includes direct checks for citizens with less income.

However, the political climate in Washington does not invite optimism. The controversial transition of the presidency is added to the approach of Christmas, since Donald Trump still does not recognize Joe Biden's victory.

In addition, the Senate control, with the election of two seats in Georgia on January 5. If Democrats win both seats, they would control the Upper House and they would have a free hand to apply much more important stimuli.

Apart from all this, this Thursday at the macroeconomic level the weekly unemployment claims, which have unexpectedly increased until 885,000, which is the highest number since the beginning of September. The problem is that the experts predicted that the requests would be reduced to 808,000. And if that wasn't enough, there has been more bad news, as the initial claims from the previous week have been revised up by 9,000, to a total of 862,000.

For his part, Philadelphia Fed Manufacturing Index December has revealed that the growth of the sector has noticeably slowed down. Activity has fallen 15.2 points to 11.1, while the expectations index has fallen by 5.1 points to 39.2. "Going forward, the manufacturing industry will maintain an upward trajectory, but the softening of demand and the resurgence of the pandemic will limit profits," say experts from Oxford Economics.

In other markets, the West Texas oil rises 1% to $ 48.31, while the euro it appreciates 0.41% and changes to $ 1.2245. Besides, the ounce of gold up 1.82% to $ 1,893. Finally, the profitability of the 10-year American bond stands at 0.90%.

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