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Yesterday was a rather difficult day on the US stock exchanges. The main indices were trading mixed and closed with different results. Thus, the Dow Jones Industrial Average hit a new record high, whereas S&P500 and NASDAQ began sliding.
The Dow Jones Industrial Average added 0.2% or 64.35 points to settle at 31,522.75 points.
At the same time, Standard & Poor's 500 dropped by 0.06% or 2.24 points to 3,932.59 points.
NASDAQ Composite inched down by 0.34% or 47.97 points to trade at 14,047.5 points.
US market participants are waiting for the ratification of the new extended program of financial stimulus. They believe that the program will greatly support the virus-hit economy and have a positive influence on the US stock market. The United States House Committee on the Budget decided to combine all the parts of the program, which were earlier proposed by US leader Joe Bide, into one. They are planning to consider this bill in the near future. The meeting is expected to take place not later than at the end of February. Otherwise, the current economic situation may become even worse.
The package of direct payments, which was supported by Speaker of the House of Representatives Nancy Pelosi, contains instructions to provide financial support in the total amount of $1,400 per one US citizen. In addition, the program of tax benefits could be expanded for families with children. Financial assistance to local authorities is also an important issue. The government is planning to keep the program of unemployment benefits until August 29 of this year. At the same time, these payments could be increased to $400 per week for one person.
At the same time, investors are encouraged by the changes in the country's epidemiological situation. The overall number of new virus cases is gradually dropping. Thus, last week, the daily rise averaged 85.9 thousand that is 41% lower than the reading logged two weeks ago. That is why market participants are expecting a full economic recovery, which could begin in the near future.
What is more, the US macroeconomic data is also quite positive. In February, the NY Empire State manufacturing index advanced by 8.6% points significantly exceeding the forecast. The indicator surpassed the reading of 12.1 points compared to 3.5 points recorded a bit earlier. It is the highest level last seen more than half a year ago.
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