Friday , February 26 2021

US stocks rise as voters lead to the polls



Wall Street ended higher and Treasuries sold out as investors were waiting to measure the outcome of the United States mid-term election.

The carefully monitored choices enabled investors to eliminate concerns about rising interest rates and global trade tensions that triggered October sales. Market analysts predict that trading will become the focus of investors attention later this month, and notes that a possible shared congress will not likely change a wrench in the US economy or shares.

After relinquishing some of their profits in the morning, the shares went higher in the last hour of trading. The S & P 500, now in five of the last six sessions, rose 0.6 percent by materials and industry sectors. All 11 S & P 500 sectors showed profits, but energy names were the worst artists among weaker oil prices.

Blue-chip Dow Jones Industrial Average rose 0.7 percent. Nasdaq Composite, hit by the weight of Apple's stock market decline Monday, recovered by 0.6 percent.

Midterm elections in the United States will decide which party controls the congress, in addition to the most important guerrential competitions. Earlier polls have shown that Democrats are moving towards a victory in the Chamber, while Republicans are prepared to hold on to the Senate. If these investigations are true, Washington could face a period of gridlock that harms President Donald Trump's ability to push legislative priorities as new tax cuts.

Oil prices fell sharply when the market reassessed the effects of US sanctions on Iranian exports. Washington's temporary exemptions for eight countries, allowing them to continue buying raw from Iran, ease the supply troubles. At the same time, the US Energy Information Administration raised its forecast for the nation's oil production.

The West Texas Intermediate accounted for an eight-month low and ended at 1.4 percent lower at $ 62.21 a barrel. Brent crude, the international benchmark, dropped 1.5 percent to $ 72.09 per barrel.

Investors will also pay attention to the Federal Reserve, which begins its two-day policy meeting on Wednesday. Although the central bank is expected to keep fire and instead deliver its fourth rate increase for the year in December, the markets will close the policy maker's statement on Thursday for some clues about future monetary policy tightening.

The Treasury market weakened as returns rose higher and resumed its highest level since mid 2011. The yield on the benchmark 10-year US Treasury increased 2.3 points to 3.2218 percent.

The dollar was flat, with the DXY dollar index, a meter of buck against a weighted basket of comrades, flat at 96,292.


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