Markets Battle As Traders Await COVID-19 Stimulus

U.S. shares are down in the present day as traders eagerly await Congress to cross a second COVID-19 stimulus package deal. Midway via the Wall Avenue session, the DJIA DOW (-180), S&P 500 SPX (-20), and NASDAQ (-25) are all within the crimson. For now, it appears to be like like merchants are in no hurry to tackle new danger going into the weekend.

The important thing story dealing with the American equities markets continues to be COVID-19 stimulus. At press time, reviews from Capitol Hill point out that progress is being made. Earlier this morning, Republican Senate majority chief Mitch McConnell mentioned:

“[I’m] much more optimistic now than I used to be final evening {that a} bipartisan, bicameral framework for a serious rescue package deal could be very shut at hand.”

What would such a invoice appear to be? We all know that it’s going to fall nicely in need of the $three trillion Cares Act of final spring, however ought to have at the very least some enamel. Up to now, listed here are the broad strokes:

• One-time checks of $600 per American citizen
• Prolonged $300 per-week unemployment advantages
• Assist for states distributing COVID-19 vaccines
• Extra small enterprise help

If there’s going to be a stimulus deal this yr, then it had higher occur shortly. With no spending invoice in place, the federal government is scheduled to close down at 12:00 AM EST this night.

Stimulus Talks Lag, Gold Enters Rotation

In a Reside Market Replace from earlier this week, I outlined a shorting alternative in February gold futures. Sadly, the commerce was a loser, producing solely 16 ticks revenue earlier than being swept out. Nonetheless, the macro 62% Fibonacci resistance stage is proving legitimate.

Overview: As we roll within the weekend break, gold is in a holding sample. Nonetheless, this market is poised for motion on the announcement of extra Congressional stimulus. In the meanwhile, all eyes are on Capitol Hill as negotiations proceed.