Stocks are in a state of the rally while the dollar reported falls on Thursday. In addition, oil settled lower but rose after several hours following reports that U.S. lawmakers could restart negotiations on economic stimulus. It is becoming an interesting topic right now.
That possibility raises the gloom that has persisted for a long time in global markets. The price may be more stable than before. The top Senate Democrat Chuck Schumer said that Republican Majority Leader Mitch McConnell agreed to resume aid talks soon.
More precisely, the talk is about the help for covid-19 pandemics as so many cases soar across the country. It is in line with what was reported by CNBC. The stimulus is one of the measures to save the U.S. economy amid a pandemic.
Data on Rising Stocks
Edward Moya, a senior market analyst at OANDA in New York, said there was a rapid shift in the market. It's all about the re-start of stimulus negotiations. That possibility should be a catalyst for a strong market and have a follow-up in Asia.
According to the data, the Dow Jones Industrial Average or DJI rose as much as 44.81 points or 0.15%. The stock was 29,483.23, the S&P 500. The SPX also rose 14.08 points, or 0.39%, to 3,581.87. Interestingly, this increase was also followed by other stocks.
An example is the Nasdaq Composite. IXIC added 103.11 points, or 0.87%, to 11,904.71. The Dow and S&P were earlier lower before the news was delivered. Meanwhile, technology stocks have risen thin. This condition has happened in almost all aspects.
The situation could be due to a new lockdown that reinforces demand expectations for online services. Oil prices reportedly reversed losses and rose higher in global market trading for several reasons. That commodity is back on track right now.
The Strong Dollar has an Impact on Gold
The rising value of the Dollar has affected some commodities. One of them is gold. This metal was reportedly slipped as much as 1% as the dollar strengthened and progress in the development of the COVID-19 vaccine boosted hopes of a faster economic recovery.
Then, talk of a U.S. coronavirus aid package to be reopened also affected this precious metal. It is known that the spot gold fell as much as 0.8% to $1,856.58 an ounce. It comes after reaching its lowest level since November 9 at $1,851.83.
U.S. gold futures also slipped as much as 0.9% to $1,856.80. A stronger dollar value and uncertainty over further economic stimulus weighed heavily on that precious metal. This was conveyed by Jeffrey Sica, founder of Circle Squared Alternative Investments.
Despite the anticipation of more stimulus, some people choose to keep profiting until they get certainty. The dollar's safe-haven rival rose 0.4% versus major currencies. The condition is due to cases of coronavirus soaring globally. A lot of countries are experiencing it.
Economic Stimulus, Vaccines, and Their Effects
Gold tends to benefit from economic stimulus. The fund is considered a protector of the value against inflation and the decline in the value of the currency that can be triggered. Optimism over progress in vaccines for U.S. authorities could be ready in a few weeks.
It has also reduced the attractiveness of bullion. The vaccine eliminates some of the long-term uncertainties associated with the virus. So while there are concerns about the short-term implications of such a surge, in the long run, people are much more optimistic.
An unexpected rise in new U.S. jobless claims also didn't help gold. There are some fears over the current state of COVID-19. But then, people now have hopes of an upcoming vaccine in a few months. The state of the market is more like a tug-of-state.
