US stock market is stuck. Indicators show no dynamic
Yesterday, at the end of the trading day, the US stock indices were not showing any significant dynamic. Indices almost remained the same. It is a good sign as earlier they slumped, influencing their colleagues across the ocean.
Nevertheless, there were some external factors that supported securities. Thus, Janet Yellen announced that it was necessary to expand the financial stimulus program even more. She also added that the package proposed by US President Joe Biden should be adopted as soon as possible. Joe Biden’s support program is worth $1.9 trillion. However, experts suppose that the project will be under consideration for two weeks.
Janet Yellen pinpointed that the US economy was gradually getting back on track after the virus-induced crisis. It is very important to take decisions on stimulus measures as they may boost the recovery process.
According to the recent data provided by the US Labor Department, in January the US unemployment rate doubled compared to the level logged before the pandemic. At the moment, the indicator is at the level of 6.3%. However, experts suppose that the real figure is 10%. This difference was caused by the fact that many of those who lost their jobs, did not have time to get on the labor exchange, or they are in no hurry to register there.
Composite PMI is another very important indicator. In February, the US composite PMI advanced to 58.8 points from 58.7 points. The rise is not big. However, at the moment, the positive tendency is more important than figures. Moreover, the growth rate is the biggest in the last four years.
At the same time, the US manufacturing PMI declined to 58.5 points from the level of 59.2 points. The final data met the forecast.
The US services PMI inched up to 58.9 points from 58.3 points. It is a really good performance for the most damaged sector. Economists had expected a decline to 57.6 points.
Yesterday, the Dow Jones Industrial Average closed almost at the same level. It just inched up by 0.98 points to 31,494.32 points.
Standard & Poor’s 500 dropped by 0.19% or 7.26 points to settle at 3,906.71 points.
NASDAQ Composite jumped by 0.07% or 9.11 points to 13,874.46 points.
During the week, S&P 500 lost 0.71% whereas NASDAQ Composite dropped by 1,57%. At the same time, the Dow Jones Industrial Average added 0.11%.
The material has been provided by InstaForex Company – www.instaforex.com