After some crucial data surfaced showing a slouch in the economic rebound, the main index of Wall Street started rising on the initial day of the fourth quarter. This also led to more and more investors betting towards a better stimulus package. Of the 11 major S&P sectors, 9 of them were extremely high, notwithstanding the fact that most of the gains were actually made by real estate and utilities. The index for consumer discretion also gained as there was an influx of investors that would flock to several of the stocks. The consumer discretionary index usually contains the information technology sector, and Amazon. And the stocks that most investors flocked towards were actually considered pretty safe in a period of economic uncertainty.
Chad Oviatt, the Investment Management Director at Huntington Private Bank spoke about how markets were supposedly fairly optimistic regarding the potential that a stimulus package might have. While it looks that the two houses are actually clamoring for a deal, no one is sure if there is actually a deal in place, or is this simply hog wash?
A Coronavirus Success Story- Wall Street Bounced Back Only to Free-Fall
Wall Street did bounce back through fiscal stimulus packages, and aggressive monetary transactions since a crash were registered in March. Yet, that soon turned out to not be enough, as S&P 500 decided to post monthly declines with the data clearly pointing towards the perilous journey that it would take to reach pre-pandemic levels. Thursday’s data showed that the jobless claims on a weekly basis did stay at recession levels, with August bringing in a drop in personal income. All this simply pointed towards a stimulus package that was extremely important in these trying times.
Steven Mnuchin, and Nancy Pelosi are still expected to help bring the members to consolidate a deal that would pass the relief legislation for COVID-19. According to Pelosi, the Oval Office, and the lawmakers from the Democratic Party are pretty close to agreeing on how big the bill would be. .DJUSAR, a major airline from the USA recently had its stocks heading higher, as Kayleigh McEnany- the House Press Secretary mentioned that the Trump government was perfectly fine with a standalone legislation that would help everyone ride through recession.
What Might Be A Wrench in the Plans For a Stimulus Package, According to Wall Street
But things won’t get resolved so peacefully. Presidential elections are simply five weeks away, and according to analysts, there are signals of higher volatility. Kim Forrest mentioned that unlike last time, we will have to reckon the force of this volatility, instead of simply forgetting everything and piling money into a market.
According to the Wall Street Index, advancing issues actually managed to outnumber the decliners 2.13-to-1 on the NYSE and 1.57-to-1 on the NASDAQ scale. The NASDAQ recorded close to 30 new lows, but 55 new highs. On the other hand, S&P recorded 10 new 52-week highs.
In this current economy, a stimulus package is what is missing. Wall Street might not be able to make it out of the economic recession if people in authority can’t make a decision for the rest of the country.