Let’s explore the reason for Rise in US Stocks on hope of economical package.
- US stocks closed higher on news that $1 trillion stimulus package can be announced anytime.
- All US indices closed in green territory with this positive news as it will bring more liquidity into the system.
- Asian markets are trading green tracking US stocks.
- SGX Nifty is in red note this morning. (7:30 A.M.)
Why US markets closed in green on economical package on Monday?
- US stocks closed with gain on the optimism that in day or two $1 trillion package will be announce to spur growth in the economy. This will flush more liquidity into the system and that will fuel the rally in the stock markets.
- This has brought cheer into the market both US stocks and Asian markets gained on this fantastic news.
- Already European Union has approve 750 billion Euro package to support their markets and now US government is planning a similar move will be key positive for the growth of stocks.
- Corona cases are still rising at fast pace and this is only risk at present that can put brakes on rally in stock markets. New restrictions on opening of economy can be a key risk in this rising cases.
- Dow Jones Industrial Average gained by 114.88 points, or 0.43%, close at 26,584.77.
- The S&P 500 rose by 23.78 points, or 0.74%, ends at 3,239.41.
- Nasdaq Composite Index increased by 173.09 points, or 1.67%, close at 10,536.27.