FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
ETX Capital information and reviews
ETX Capital
Markets.com information and reviews
FxPro information and reviews
47 554.25

US stocks ignore Capital Hill chaos

7 January 2021

There were chaotic scenes on Capitol Hill on Wednesday, as it was breached by pro-Trump protestors. Lawmakers were in the middle of a debate over the legitimacy of the November presidential election results, before they were driven from their chambers by the mob. Still, markets deemed such events as mere “noise”, and didn’t deter them from offering their reaction to the “blue wave”.

Dow climbs on Democrats’ Senate sweep

Democrats were declared winners of both Georgia Senate runoffs, giving them political control of the White House, the Senate, and the House. All this means that incoming US President Joe Biden, once he is inaugurated on 20th January, would have a much easier time implementing his agenda.

And such an agenda could make for more US fiscal stimulus, which is set to benefit key sectors of the real economy. With such a narrative in mind, no surprise that the Dow Jones index was the best performer out of the three main US equity benchmarks, given its larger exposure to real economic sectors such as industrials, consumers, and energy. These three sectors account for about 40 percent of the total weightage on the Dow, which climbed 1.44 percent in the Wednesday US session.

Dow Jones futures are now pushing higher, and with the MACD tilting over to the bullish side, it suggests that the 31,000 line could soon be breached as this nearly-125-year-old index posts new record highs.

What does the “blue wave” mean for Big Tech?

The campaign against Big Tech had received bipartisan support, even before the November presidential election. So the heightened regulatory scrutiny would have ensued anyway, no matter who won control of the White House and the Senate. However, with Democrats now holding ultimate sway on Capitol Hill, it raises the spectre of tougher regulations and also a potential tax hike.

Such a combo of dampeners suggests that tech stocks would have to put in a lot more effort to climb over the next couple of years. With such expectations in mind, the tech-heavy Nasdaq 100 fell by another 1.4 percent on Wednesday, extending its week-to-date declines to 2.06 percent. FAANG stocks felt the brunt as the “blue wave” came crashing down on them:

However, with Nasdaq futures now pushing higher, it suggests that tech stocks are set to pare losses from the first half of the week.

Tesla: a potential “blue wave” winner

Besides stocks in the real economy, green stocks such as Tesla are set to enjoy tailwinds under the Biden administration. The green agenda is very much aligned with the Democratic platform, with Biden even signalling his intentions for America to pivot away from Oil during one of the presidential debates.

No surprise then that Teslas stock posted a new record high, closing just below the $756 mark. Given the expected policy tailwinds for the EV sector over the coming years, the EV maker's share price may well build on its mercurial 743 percent gain from 2020.



Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021

Gold is anxiously waiting for the US inflation data
Gold is anxiously waiting for the US inflation data

Gold, hovering around $1790 since last Thursday, might take an even harder hit. The bears are waiting for a good signal to launch an attack. It is now holding it below significant levels...

14 Sep 2021

Here Is Why Stock Futures Are Trading Lower
Here Is Why Stock Futures Are Trading Lower

Despite a week of doom and gloom in the stock markets, futures in the United States are still trading lower. Since February, the S&P 500 has been on its longest...

13 Sep 2021

Fintech - too big to be?
Fintech - too big to be?

Two of the world’s largest economies are in sync with pressure on their fintech giants. Access to user data and the growth of ecosystems have effectively...

13 Sep 2021

European Futures Set To Recover Losses
European Futures Set To Recover Losses

European futures are trading higher today as investors are largely glad that the European Central Bank didn’t take too many hawkish monetary initiatives yesterday...

10 Sep 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.