The US stock markets posted new record highs following the inauguration of President Joe Biden on Thursday.
The growth leaders were shares of companies in the communications sector - primarily Netflix, which jumped 17%. Earlier, the video streaming service reported that the number of its subscribers at the end of last year exceeded 200 million. Representatives of the company said that from now on Netflix has the opportunity to receive more than it needs, so it does not plan to borrow in the near future to implement its growth strategy.
The S&P 500 index increased by 1.4%, to 3851.85 points. This was the new closing high. The Nasdaq Composite gained 2%, to 13457.25 points, and also posted a record closing level. The Dow Jones Industrial Average did not want to stay away from loud highs and also recorded growth by 0.8%, to 31,188.38 points
The current week turned out to be surprisingly favorable for the American stock markets in anticipation of Joe Biden's inauguration. Investors are encouraged by the new stimulus package to bolster the economy amid the COVID-19 pandemic.
Experts believe that a significant part of state aid will be aimed at supporting companies that have fallen into difficult financial situations due to the coronavirus pandemic. Moreover, every company that does not meet the expectations placed on it or disappoints with its financial performance will be severely punished. Analysts say that most of the optimistic estimates have already been taken into account in quotes, so US companies have very little room to maneuver when their shares are at historic highs.
A good example is the shares of the largest American company in the field of medical insurance UnitedHealth, which lost 0.4% in price after it reported a drop in profits in the last quarter of the past year.
Given that the reporting period is only gaining momentum, the attention of market participants will gradually shift to the sectors most dependent on the US economy. Traditionally, sectors such as the banking and oil and gas industries, as well as the leisure and hospitality industries, are most seriously affected by the COVID-19 pandemic.
Meanwhile, the pan-European Stoxx Europe 600 was up 0.7%. UK education publisher Pearson jumped nearly 6% after the company reported higher sales amid the rising popularity of online education during the coronavirus pandemic.
Asia-Pacific stock markets, on the other hand, reported uncertain multidirectionality. Japan's Nikkei 225 Index declined 0.4%, while China's Shanghai Composite Index rose 0.5%. The Hang Seng in Hong Kong rose 1.1% to hit a 20-month high. Experts explain such a spectacular positive dynamics in the stock market was due to the support from the infusion of funds from mainland China.
The Chinese company, Alibaba, jumped 8.5% on the Hong Kong stock exchange after the struggling owner of the internet giant Jack Ma went public for the first time in three months.