Wall Street Closes at Record High

21/01/2021

Wall Street closed at a record high following promises of big economic stimulus.

The Biden administration proposed a stimulus package of $1,400 for most citizens. This resulted in the sapped demand for safe currencies and consequently, the USD dropped against major currencies on Thursday.

Investors and analysts are looking to get clues on the currents of Eurozone economic health as the European Central Bank policy meeting approaches. Eurozone stocks climbed 0.3% ahead of the meeting. The election of Joe Biden has created room for optimism and consequently, European stocks traded higher on Thursday.

Wall Street reached the record high on Wednesday. Inauguration of Biden could be one reason together with an upcoming $1.9 trillion fiscal stimulus package. The latter was initiated to tackle the damage that the COVID-19 pandemic related lockdowns have caused to the economy.

"In the past few days, the market has been breathing a sigh of relief that we had a safe transfer of power from Trump to Biden," said Dhaval Joshi, strategist at BCA Research.

The biggest Dow winners were Microsoft, Apple, and Salesforce.com. Visa, Nike, and McDonald's were the blue-chip winners.

The movie streaming giant Netflix has shared its quarterly report. They managed to obtain 8.51 million new subscribers, while the expectation was only 5.51 million. The stock price raised to the new all-time high by 17%.

Google parent Alphabet topped sales estimates and jumped 5.4%. While sales giant Amazon reached 5%.

After the largest digital currency bitcoin hit an all-time high of $41,900, speculations followed that the asset was merely a bubble. As a result, it closed low on Wednesday, going down by 5.9% (below $33 000) that has been the lowest within the last three weeks. Losses have accelerated in the past two days.

Ideas about bitcoin vary. Some market participants and analysts claim cryptocurrencies could act as a hedge against inflation due to institutional interests. Others believe bitcoin to be a speculative bubble and predict its collapse like it did in 2017.