Black New Year — Dow Falls Below 30,000

  • Investors are paying attention to vaccine promotion and the progress of the fiscal stimulus plan.
  • The current Speaker of the House of Representatives, Democrat Nancy Pelosi, was re-elected, starting her fourth two-year term in the post.
  • U.S. President Donald Trump formally signed a spending package of approximately $2.3 trillion on December 27.

After the new high in 2020, the U.S. stock market fell across the board and encountered a black New Year. The Dow fell nearly 400 points, and once fell below the psychological barrier of 30,000 points. Gold and silver stocks bucked the trend and rose. Qutoutiao rose more than 22%, Bilibili rose more than 10%, Weilai rose more than 9%, and Pinduoduo fell more than 6%.

Stock markets

Investors are paying attention to vaccine promotion and the progress of the fiscal stimulus plan.

At the same time, the continued growth of global coronavirus cases and concerns about the Senate election are putting pressure on the market.

The Dow Jones Index fell 382.59 points, or 1.25%, to 30,223.89. The S&P 500 Index fell 54.33 points, or 1.45%, to 3,701.74. The Nasdaq Composite Index fell 189.84 points, or 1.47%, to 12,698.45.

In the morning yesterday, the Dow rose to 30,674.28 points, and the S&P 500 index rose to 3769.99 points, both hitting intraday record highs.

European stocks closed mostly higher on Monday. The German DAX30 index rose 0.09%, the UK FTSE 100 index rose 1.75%, the French CAC40 index rose 0.68%, and the European Stoxx 50 index fell 0.27%.

The Shanghai Composite Index rose 0.86%, the Nikkei 225 index fell 0.68%, South Korea KOSPI index rose 2.47%.

The price of gold futures for February delivery on the New York Mercantile Exchange rose by $51.50, or 2.7%, to close at $1,946.60 per ounce, the highest closing price since November.

The dollar exchange rate fell to a two-and-a-half-year low, pushing up the price of gold. Silver futures for March delivery rose 95 cents, or 3.6%, to close at $27.364 per ounce.

The price of West Texas Intermediate (WTI) crude oil for February delivery on the New York Mercantile Exchange fell 90 cents, or nearly 1.9%, to close at $47.62 per barrel. The price of Brent crude oil futures for March delivery on the London Intercontinental Exchange fell 71 cents, or 1.4%, to close at $51.09 per barrel.

House Re-Elects Speaker Pelosi

U.S. House of Representatives Speaker, Nancy Pelosi.

The 117th US Congress opened on the 3rd and voted to elect the new Speaker of the House of Representatives. The current Speaker of the House of Representatives, Democrat Nancy Pelosi, was re-elected, starting her fourth two-year term in the post.

In the Senate, the current Senate Majority Leader and Republican Mitch McConnell, has also been re-elected. On that day, under the auspices of Vice President Pence as the President of the Senate, Sen. McConnell and other re-elected or new federal senators were sworn in.

At present, the control of the new Senate is still pending and will depend on the results of the Georgia senate runoffs held on the 5th.

In the Senate, the Democratic and Republican parties currently occupy 46 and 50 seats respectively, and the other two seats are held by independent senators who vote with the Democrats. If the Republican Party wins one or two seats in the Georgia runoff, it will be able to maintain its majority party status.

If the Democratic Party wins two seats, the two parties will actually have 50 seats each. Under this circumstance, the Democratic Vice President-elect, Sen. Kamala Harris (D-CA), who is expected to take office on January 20, will serve as the President of the Senate. Voting allows the Democratic Party to control the Senate.

Faced with pressure from the U.S. Congress and all sectors of society, U.S. President Donald Trump formally signed a spending package of approximately $2.3 trillion on the evening of December 27, 2020, local time to deal with the coronavirus epidemic. Families and businesses provide financial assistance and avoid the shutdown of the federal government.

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Doris Mkwaya

I am a journalist, with more than 12 years of experience as a reporter, author, editor, and journalism lecturer." I've worked as a reporter, editor and journalism lecturer, and am very enthusiastic about bringing what I've learned to this site.  

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