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    Signs of a resurgence in the U.S. economy push stock prices high

    Investors pushed US stocks to record highs last week, boosted by lower unemployment and advances in treatment for Covid-19, which gives hope to a resurrected economy.

    The S & P 500 Index for Best US Equities, considered a benchmark for US corporate health, rose 2% in the week leading up to Friday, showing the best weekly performance in four and a half months, for the third straight week. Recorded everything new. -Maximum time.

    The index was highly guided by companies beaten during the coronavirus pandemic, such as airlines, cruise operators, and casinos, as follows: Pfizer Announcement The antiviral drug has succeeded in reducing the hospitalization rate due to Covid-19 by 90%.

    Evidence that the US economy is breaking out of the pandemic recession further strengthened sentiment. The latest employment report shows that employment growth is recovering in almost every sector after months of sluggish growth. More than 500,000 new jobs were created in October, and the unemployment rate fell to 4.6%, a move beyond economists’ expectations.

    Kristina Hooper, Invesco’s Chief Global Market Strategist, said: “We’re not there yet, but we’re definitely on the right track. Growth is accelerating again and is being helped by new developments in Covid treatment.”

    Scott Gottlieb, a former member of the Food and Drug Administration and a member of Pfizer’s board of directors, said on Friday that the pandemic could end by January.

    Pfizer’s announcement added to Thursday’s results from Merck that its own pills reduced hospitalization by 50%.

    Live Nation Entertainment, which hosts live concerts reduced by social constraints during a pandemic, has risen by more than 20% in a week. This is the largest rise since March 2020, when the federal government first entered the financial markets to calm the recession. From a pandemic. Cruise operator Royal Caribbean also rose by more than 14%, the largest increase this week.

    “We’ve moved to a new stage in the pandemic,” said Rebecca Patterson, director of investment research at Bridgewater, adding that cautious comments from the central bank this week have supported the stock market surge.

    NS Federal Reserve On Wednesday, we took the first big step towards ending the pandemic crisis support for financial markets.

    The US central bank has announced that it will begin curtailing its $ 120 billion monthly asset purchase program with the goal of completely ending the stimulus package by the second half of next year.

    This decision was of little surprise to investors who had been waiting for guidance for months amid prolonged deliberation among Fed officials.

    Federal Reserve Chairman Jay Powell’s reassurance that the central bank is pursuing a patient approach to raising interest rates also eases investors’ fears that a substantive move to higher borrowing costs will soon come. It was useful for.

    “He’s doing everything he can to avoid confusion,” Hooper said.

    Additional report by Nicholas Megaw and Kate Duguid

    Signs of a resurgence in the U.S. economy push stock prices high

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    The post Signs of a resurgence in the U.S. economy push stock prices high appeared first on Eminetra.

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