Forex Analysis & Reviews: 03.02.2021 - US stocks target records...

Live Chat

InstaForex - Official partner of Dragon Racing

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

03.02.2021 12:55 PM

US stocks target records again

US stock markets saw a significant rise on Tuesday. The major stock indexes have been demonstrating good growth for the second trading session in a row, which gives hope for further positive dynamics. The reason for this confidence is the news of a significant breakthrough in vaccination. Many of the problems associated with this have been almost completely resolved, which indicates that the process will gain momentum soon.

The Dow Jones Industrial Average was able to rise 1.57% or 474.57 points, to 30,687.48 points.

The S&P 500 Index jumped 1.39% or 52.45 points. Its level at the close of Tuesday's trading amounted to 3,826.31 points.

The NASDAQ Composite Index increased by 1.56% or 209.38 points, which sent it to 13,612.78 points.

Investors are especially encouraged by the news that mass vaccination in the United States is gradually gaining momentum. According to statistics, almost 26 million people have already been vaccinated with the first dose of the drug, and 6 million people have supplied the second part of the vaccine. This suggests that the pace is growing rapidly, although it has not yet been possible to cope with the increase in coronavirus infection.

Since the beginning of the pandemic, more than 26.2 million cases have already been identified in the US, with more than 443,000 recorded deaths. These are, of course, considerable numbers, which cause some concern, but progress in vaccination, according to experts, can turn the tide.

Such a significant rise in the major US stock indexes coincided with the decline in the value of securities of certain companies in the gaming sector. In particular, the shares of the gaming store GameStop Corp. slipped significantly, following its notable rise last week. GameStop failed to consolidate their success: on Monday and Tuesday, they dropped by almost 31% and 60%, respectively.

The negative in the gaming sector is primarily associated with the rapid outflow of short positions, which were massively closed within one day. At the same time, some analysts argue that this is all a continuation of the struggle that retail investors and hedge funds began last week.

Also, stock markets are showing signs of recovery amid the emerging stability with the expansion of the so-called "soap" bubble in the retail investment sector. Fears that it might burst are gradually leveled, which means that the work of market participants is becoming more confident.

The new expanded financial assistance program in the United States, which has not yet been written off, continues to provide additional hope. An active discussion of its implementation continues, which means that the final positive decision is not far off. At least two bitter parties - Democrats and Republicans - have already prepared a joint budget resolution, which is the first step towards deciding on the stimulus package. Now there is every chance that the entire package of measures worth $ 1.9 trillion will be ratified. This requires only a majority of votes.

Recall that the Republican Party tried to push its stimulus package totaling $618 billion to the Senate, but this amount seemed scanty to President Joe Biden and Treasury Secretary Janet Yellen. These measures are clearly not enough to restore stability to the American economy and fully cope with the crisis that arose against the backdrop of the coronavirus pandemic.

An additional signal for growth in US stock markets was corporate news. The statistics that are gradually coming to the press indicate an improvement in the state of affairs and financial stabilization in many large companies in the country, regardless of the sector of activity.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.