FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
FxPro information and reviews
HFM information and reviews

Can the stock market climb some more before January ends?

27 January 2021

The S&P 500 is one of the main benchmarks used to measure the overall performance of the US stock market. It has been treading water around the 3850 mark since 20th January, as investors await clearer signs about whether to push stocks higher or lower.

To be clear, this blue-chip index has climbed 2.5 percent already so far in 2021. At the time of writing, the futures contracts for the index are edging higher, which suggests that the S&P 500 is set to open flat when US markets begins regular trading for its Wednesday session.

Investors could get a big, F.A.T. signal today.

Facebook, Apple, and Tesla are all set to announce their latest quarterly earnings respectively after US markets close on Wednesday. Note that the total value (market capitalization) of these 3 companies combined exceeds $4 trillion, which is nearly 12% of the S&P 500’s total market cap of $34 trillion.

Investors have been flocking to these stocks of late in anticipation of some stellar financial results from the final three months of 2020. The buying spree has led to some fascinating stats on these stocks:




And just because investors have already been pricing in some of the expected earnings, it does not mean the stock does not have any more room to climb in the immediate term. Take Microsoft for example. Even though investors had been expecting some excellent numbers from its Q4 performance (which was just announced a few hours ago after US markets closed on Tuesday), the software giant’s stocks still popped by as much as 6.5 percent in late trading, even after closing the regular Tuesday session at a new record high!

Of course, it helped that Microsoft’s results came in better than expected.

Hence, Facebook, Apple, and Tesla similarly may require such positive surprises to help push the S&P 500 higher. That also assumes that non-tech stocks on the S&P 500 don’t go too far in the opposite direction today. And then, there’s the Federal Reserve. The US central bank is in the midst of a two-day meeting which began yesterday, and the Federal Open Market Committee is due to announce its policy decision later today. Investors will be paying very close attention to the words of the central bank chief, Jerome Powell.

The Fed chair has to convey to the markets that policymakers will be very careful about when they unwind some of its support for financial markets.

For reference, besides cutting benchmark interest rates to near-zero, the Fed has been buying about $120 billion worth of bonds per month to help the US economy amidst the pandemic. As the US economy recovers, due in part to the vaccine’s rollout, the central bank is bound to eventually pull back on some of that bond-buying. Global investors are very eager to find out when, and how, the Fed will do so.

One wrong move or a slip of the tongue on Powell’s part could cause a massive jolt to global financial markets, with investors fearing a repeat of the infamous 'taper tantrum' of 2013. As long as the Fed chair does his job right today, and conveys with conviction the central bank’s intentions in a calm and clear manner, US stock markets could see more gains over the coming sessions.




The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

31 Oct 2022

XAU/USD juggles around $1,710 as investors await US NFP
XAU/USD juggles around $1,710 as investors await US NFP

Gold price (XAU/USD) is displaying topsy-turvy moves in a narrow range of $1,709.35-1,713.42 in the early European session. The precious metal is displaying a lackluster performance...

7 Oct 2022

Positive mood stalls on the “pivot” trade
Positive mood stalls on the “pivot” trade

USD slid against most of its major peers. The DXY closed a tick above its lows of 110.05. Resistance is at 110.76 while next support is 109.29. GBP gained for a sixth session in a row, a winning streak not seen since April 2021...

5 Oct 2022

OctaFX glances at current economic shifts - the good, the bad, and the strange
OctaFX glances at current economic shifts - the good, the bad, and the strange

Pandemics and health crises, political tensions, geopolitical tension flashpoints popping up, Western sanctions on significant European and Asian economies, and grave tensions between...

3 Oct 2022

The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022

Editors' Picks

IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
MultiBank Group information and reviews
MultiBank Group
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 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.