(Daily Notion): Mixed Day For Wall Street as The Breach of Capitol Hill Stuns the World, Next Mover: Nonfarm Payrolls Data

NASDAQ 100 (as of Jan 7, 2021 at 3 p.m.)

Source: Yahoo Finance

SPX 500 (as of Jan 7, 2021 at 3 p.m.)

Source: Yahoo Finance

US30 (as of Jan 7, 2021 at 3 p.m.)

Source: Yahoo Finance

It was a mixed day on Wall Street as the US30 rose 1.24% and the SPX500 gained 0.52%. The NAS100 dropped 0.63%. There were gains in the financials, utilities, and basic materials sectors. Losses were observed in the consumer services, consumer goods, and technology sectors. The CBOE Volatility Index increased by 5.64%.

In related news, the S&P Dow Jones Indices has announced that it will remove three Chinese telecom firms’ American Depository Receipts (ADR) from its benchmarks by Jan 11. These three companies are China Mobile, China Telecom Corporation, and China Unicom (Hong Kong).

The closely watched U.S. Georgia Runoff Elections resulted in a victory for the Democrats. With that, stocks and commodities experienced a gained in anticipation of a big borrowing and spending Democrat administration. 

However, the victory was dampened as President Donald Trump’s supports breached Capitol Hill. This led to a suspension of a joint session of Congress to certify Joe Biden’s electoral victory. Although President Trump has urged his supporters to ‘go home in peace’, his Twitter account has been temporarily suspended. A 12-hour curfew was also declared in Washington.

During his press conference, Joe Biden was visibly disturbed, calling this ‘a dark moment’ in U.S. history, a country that places great importance on democracy. U.K. Prime Minister Boris Johnson has also condemned the ‘disgraceful scene’.

There is a risk-off sentiment prevalent in the market following this incident, as the world waits for law and order to be restored. There are also fears of future violence which are contributing to market jitters. The Chief Investment Strategist of Inverness Counsel in New York, Tim Ghriskey has cautioned that the escalation of the situation could impact stocks performance. As the world waits for the dust to settle in Washington, another key event to watch out for would be the release of the nonfarm payrolls on Friday.

FOLLOWME User Sentiment (as of Jan 7, 2021 at 3.05 p.m.)

SPX500

Short – 80.88%

Long – 19.12%

NAS100

Short – 67.02%

Long – 32.98%

US30

Short – 78.03%

Long – 21.97%