Major US stock indexes posted new record highs at the close of the trading session on Monday. The reason for this is the optimism of investors against the backdrop of the accelerating pace of global economic recovery and active vaccination of the population against COVID-19.
Treasury Secretary Janet Yellen's statement on Sunday also provided a pressing impetus for the growth of US stocks on Monday. According to Yellen, if the US Congress supports the $1.9 trillion state aid package for the economy, the country will be able to return to full employment in 2022. Recall that, last week, the Democrats organized a vote to unblock the process of resolving budget differences. Such a move would allow the Democratic Party to accept President Joe Biden's program without the support of Republicans in the Senate. The finalization of the anti-crisis plan and voting on it is planned to be carried out by the end of this month. Experts believe that additional stimulus measures in the United States will become tangible support for foreign stock markets, as America is a net importer of goods and services.
Recently, the US stock exchanges have seen significant growth and a move away from alarming volatility. Market participants focused on the prospects for a new government stimulus package that could support economic growth at a time when large corporations publish favorable financial reports.
At the same time, experts say that today on the stock market, one can track clear signs of speculative rather than investment activity. As proof of their words, they cite the example of the securities of the American retail chain GameStop and the bitcoin rate.
The Dow Jones Industrial Average grew by 0.76%, to 31385.76 points, the S&P 500 increased by 0.74%, to 3915.59 points, and the NASDAQ Composite jumped 0.95%, to 13987.642 points. All three indices closed the trading session at new all-time highs, also, the S&P 500 and Dow Jones closed in positive territory for the sixth straight session, for the first time since August 2020
Shares of Walt Disney Co, Cisco Systems Inc, and General Motors Co rose 1.8-4.9% ahead of quarterly reports.
BTC exchange rate jumped about 14% (to $44,009) after electric vehicle maker Tesla announced it invested $1.5 billion in digital coin in January as part of a new policy designed to maximize cash returns. By the way, in the documents for the regulator, the company representatives indicated that they are planning to accept bitcoin as a means of payment. The value of Tesla shares increased by 1.3%, while the cryptocurrency miners Riot Blockchain and Marathon Patent Group - by more than 40%.
The American conglomerate Loews reported an increase in profits, after which its shares rose sharply by 1.3%.
Palantir Technologies rose 5.9% on the announcement that it is joining forces with IBM on certain cloud-based business applications.
The shares of the companies, which have been watched with interest by the whole world lately, were reported in different directions on Monday. Thus, the shares of GameStop rose 5.9%, while AMC Entertainment sank 9.5%.
Meanwhile, the global black gold market continues to strengthen its position. The cost of a barrel of Brent crude for the first time since the start of the coronavirus pandemic in January 2020 crossed the $60 mark and reported an increase of 2.1% - at $60.56 per barrel.
The rise in profitability has spurred an active increase in the shares of European lenders, which have been hit hard by low-interest rates in recent years. Thus, the banking sector today is among the leaders in the European market. The pan-European Stoxx Europe 600 increased by 0.3.
As for the stock markets of the Asia-Pacific region, the Shanghai Composite index grew by 1%. The Nikkei 225 gained 2.1% towards the close of the trading session, amid Nikkei Asia's announcement that Japan is ready to consider lifting the state of emergency in some prefectures before the deadline.
The stocks of SoftBank Group in Tokyo jumped 4% after the company posted a quarterly profit of $11 billion, mainly due to investment income.
The yield on 10-year US government bonds dipped to 1.159% from 1.168% on Friday.
