(DAILY NOTION): Wall Street Bulls Turn Things Around, Can the Momentum Last? Next Mover: Progress of Biden Stimulus Package

NASDAQ 100 (as of Feb 25, 2021 at 12.20 p.m.)

Source: Yahoo Finance

SPX 500 (as of Feb 25, 2021 at 12.20 p.m.)

Source: Yahoo Finance

US30 (as of Feb 25, 2021 at 12.20 p.m.)

Source: Yahoo Finance

It was a glorious day for the Wall Street bulls as they marched on and regained their footing. The day closed with the US30 leading the charge with a 1.35% gain, followed by the SPX500 with a 1.14% gain, while the NAS100 closed 0.99% higher. The day also saw value sectors such as energy and industrial picking up momentum.

Interesting, the cause for the bulls were supported by the dovish sentiment picked up in the second part of Jerome Powell’s testimony. In his bi-annual testimony to the U.S. Congress, the chairman of the U.S. Federal Reserve (Fed) eased concerns about inflations, while reiterating the bank’s commitment to ensure full employment is restored to the economy.

As the week closes, Friday will mark an important day in the progress of the Biden Stimulus Package. Tomorrow, the U.S. House will take a vote on the bill. On Monday, it has successfully advanced from the U.S. House Budget Committee, and if tomorrow’s hurdle is cleared, it then progresses on to the Senate.

There is much hype around the proposed $1.9 trillion stimulus package as a driver to economic recovery. As the world reaches a one-year-mark since the escalation of the Covid-19 pandemic, it is undeniable just how much the world has changed, and it has been a long and unprecedented year. A return to normal is much longed for, and at this moment for the U.S. economy, it appears that this stimulus package is the best bet to herald that,

Meanwhile, Bloomberg reported that as of Feb 25, more than 218 million doses of Covid-19 vaccines have been administered, with at least 6.14 million doses given per day. In the United States alone, 66.5 million doses have been administered. Furthermore, the U.S. Food and Drug Administration (FDA) has said that Johnson & Johnson’s single-dose Covid-19 vaccine works safely, and this is encouraging progress towards seeing a third vaccine authorised in the U.S. soon.

FX Street reported that the latest Reuters poll of strategists on Thursday show that the rally in U.S. stocks can be expected to last throughout 2021, with SPX500 ending almost 6% higher.

With the bulls successfully turning things around yesterday, can this momentum sustain? Let’s keep an eye out here.

FOLLOWME User Sentiment (as of Feb 25, 2021 at 12.15 p.m.)

SPX500

Short – 77.59%

Long – 22.41%

NAS100

Short – 59.90%                

Long – 40.10%

US30

Short – 74.48%

Long – 25.52%