U.S. stocks fell for a second straight day on Friday as President-elect Joe Biden unveiled a $1.9 trillion bailout package and weaker-than-expected retail sales last December highlighted the continued impact of the new pneumoconiosis (CCP) epidemic on the U.S. economy. U.S. bankers, who were the first to release earnings, also cautioned that economic uncertainty remains high.
The Dow Jones Industrial Average fell 177.26 points on Friday to close at 3,0814.26 points. The Stamp 500 and Nasdaq Composite each fell 0.7% and 0.9%. The Dow Jones was down 0.9 percent for the week, while the Stamp and Nasdaq each fell 1.5 percent.
The Philadelphia Semiconductor Index plunged 2.1% on Friday, ending a four-day rally, still up 1.9% for the week. TSMC ADR fell nearly 1% Friday, up 5.5% on the week. TSMC has surpassed Berkshire Hathaway to become the world’s 10th largest company by market capitalization this week.
Retail sales fell 0.7% in December from the previous month, which economic experts had expected to be unchanged. Goldman Sachs chief economist Jan Hatzius pointed out that “the retail sales report indicates that the 4th quarter consumer growth is lower than originally expected and well below market expectations”.
Natixis Investment Management global market strategy director Esty Dwek, pointed out that the decline in U.S. stocks on Friday is typical of the so-called “buy on rumors, sell when facts”, the market has been expected to Biden will launch a huge stimulus package, but also expected Congress will be cut to a smaller version.
BlackRock investment strategy director Li Wei pointed out that the purpose of the bailout package is certainly to stimulate the economy, but investors also gradually believe that with the Democratic Party in the Senate to grasp the majority, the medium-term may promote tax increases, which is also the market must assess things.
JPMorgan Chase, Citigroup, Wells Fargo released a lending allowance for bad debts of more than $5 billion, which is less than originally expected, but JPMorgan Chase CEO David Dimon reminded that the global economy faces the risk of a new pneumonia epidemic is still severe, he said, JPMorgan Chase’s credit provision of more than $30 billion, which reflects the recent economic uncertainty is still high.
Recent Comments