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12.02.2021 10:42 AM
US stocks ended mixed with weak dynamics which almost resulted in loss gains

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US stock exchanges were mixed at the close of the trading session on Thursday. Dynamics were also quite weak, which led stocks to almost completely losing gains that were won at the very beginning of the trading day.

Some indicators were able to demonstrate good results again and even renew their maximum values. These particularly include the S&P 500 and NASDAQ indexes. Among the leaders in the corporate sector were the securities of American companies in the technology sector. Healthcare and communications stocks did well. On the other hand, companies in the energy sector began to experience significant difficulties, which forced them to rapidly reduce their positions.

New statistics were also released on Thursday. So, the interim results on the labor market became known. According to official statistics from the US Department of Labor, the total number of American citizens who applied for unemployment benefits for the first time fell by 19,000, sending the total count of unemployed to 793,000. Note that this is the lowest level recorded in the last five weeks. Of course, investors could not help but react to this: their mood improved somewhat, as there was hope that the country's economy would recover at an accelerated pace.

Meanwhile, stocks found support from the speech of the US Federal Reserve Chair Jerome Powell, who rushed to announce that the country's main regulator does not intend to make changes to the country's current monetary policy. The central bank intends to continue to maintain low-interest rates and large-scale asset repurchases, as these measures have already proven themselves and have demonstrated high efficiency. The state's economy receives sufficient support, which can affect the acceleration of the pace of recovery from the crisis that arose against the backdrop of the coronavirus pandemic. In the medium term, the Federal Reserve is unlikely to consider winding down stimulus based on a transition to a higher level of interest rates. Moreover, it is also not planned to reduce the total volume of redemption of government bonds. Analysts and experts believe that such a policy will last at least the entire 2021, so investors can be relatively calm about this.

Powell noted that the situation in the country cannot be improved solely by the actions of a soft monetary policy. For the labor market to fully return to at least the pre-crisis form, it is necessary to apply other support measures. This particularly refers to an expanded program of financial incentives proposed by President Joe Biden. Moreover, Powell is not bothered by the problem that may arise against the background of too much cash injection. We are talking about a possible increase in inflationary risks. At least if we compare the two troubles - inflation and the grave consequences of the crisis from the pandemic, the latter seems to be the most negative and dangerous, since the struggle in this respect will be more difficult and longer. At the same time, there are well-developed mechanisms

Thus, the most terrible disaster for the economy is still the coronavirus pandemic. Its impact remains difficult to fully assess.

The Dow Jones Industrial Average closed Thursday's trading day with a slight decrease of 0.02% or 7.1 points, which moved it to the level of 31,430.7 points.

The S&P 500 index, on the other hand, increased by 0.17% or 6.5 points, to 3,916.38 points.

The NASDAQ Composite index rose more thoroughly - by 0.38% or 53.24 points, which allowed it to move to the area of 14,025.77 points.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
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