S&P 500 ends volatile day slightly higher, Apple pushes Nasdaq to another record close
26 Jan 2021 | SET News
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The S&P 500 erased earlier losses and rose slightly to a record on Monday as investors prepared for a busy week of earnings featuring reports from the largest tech companies.
The broad equity benchmark closed the volatile day 0.4% higher at a new record close of 3,855.36. The S&P 500 fell 1.2% at its low of the day. The tech-heavy Nasdaq Composite gained 0.7% to reach a fresh closing high of 13,635.99. The Dow Jones Industrial Average, less susceptible to changes in technology shares, dipped 36.98 points, or 0.1%, to 30,960.00. At its session low, the 30-stock benchmark dropped more than 400 points.
The move higher came as President Joe Biden tries to push through a $1.9 trillion stimulus program that many congressional Republicans oppose. The fiscal aid includes direct checks to millions of Americans, aid to state and local governments, funding for Covid vaccines and testing, a boost to the minimum wage and enhanced unemployment benefits, among other things.
The number of coronavirus cases continues to tick up in the U.S. and abroad, but many economists are forecasting a return to growth later this year.
“We continue to expect that a reduction in virus risk due to mass vaccination coupled with fiscal support for consumer spending will lead to a mid-year consumption boom and very strong growth in 2021,” Jan Hatzius, chief economist at Goldman Sachs, said in a note to clients over the weekend.
However, the firm noted that while risks like insufficient fiscal aid look now look less likely, other risks remain. Hatzius cited consumers remaining more cautious than expected as well as the evolution of a vaccine-resistant virus strain as potential future headwinds for the market.
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