(DAILY NOTION): NAS100, SPX500, and US30 Ended the Day Lower, Next Mover: Outcome on U.S. Pandemic Relief Payment

NASDAQ 100 (as of Dec 30, 2020 at 3.15 p.m.)

Source: Yahoo Finance

SPX 500 (as of Dec 30, 2020 at 3.15 p.m.)

Source: Yahoo Finance

US30 (as of Dec 30, 2020 at 3.15 p.m.)

Source: Yahoo Finance

After a stellar closing the previous day, all three major indices on Wall Street closed lower. The NAS100 led the charge with a 0.38% decline, followed by the US30 and SPX500 which both fell 0.22%. The dip was mainly due to Industrial, Technology as well as Oil and Gas shares.

Analyst Chuck Mikolajzak from Investing.com opined this was due to investors’ concern about the path of the economic reopening as well as questions whether the Senate would pass the additional pandemic relief payments.

This was evidenced by stocks failing to rise further upon news of U.S. Senate Majority Leader Mitch McConnell blocking consideration for the additional relief payments. He also opined that the lower trading volume would also make the market more volatile.

Analyst Yasen Ibrahim from Investing.com states that the markets seem to be getting ready for a double-digit correction, on macro-based concerns as well as pandemic woes triggering headwinds next year.

This is also echoed by analyst Caroline Gerben from Investing.com who opines the current ‘Biden Rally’ could most likely run into the spring of 2021, before experiencing a double-digit correction. This would then prepare the way for another rally into 2022.

However, in a recent statement to Bloomberg, Invesco global market strategist, Brian Levitt opines that the economy is indeed recovering and makes a good backdrop for risk assets.

As mixed opinions flood the market, no doubt traders will be paying close attention to the upcoming U.S. data as well as an update from Senate on the additional relief payment.

FOLLOWME User Sentiment (as of Dec 30, 2020 at 3.10 p.m.)

SPX500

Short – 79.81%

Long – 20.19%

NAS100

Short – 77.78%

Long – 22.22%

US30

Short – 74.56%

Long – 25.44%