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Sunday, May 16, 2021

Wall Street hits record highs after Biden’s inauguration

The US Wall Street Stock Exchange rose to record levels at close, Wednesday, following the swearing-in of Joe Biden as President of the United States, while investors pinned great hopes on his administration.

The Dow Jones industrial average closed higher by 0.83% to 31.188.38 points, while the Nasdaq index of technology stocks rose 1.97%, mainly driven by the gains made by the share of “Netflix”, and the index reached 13.188.38 points. The broader S&P 500 rose 1.39% to 3,851.85 points.

With the new US administration assuming power, investors expect the United States to endorse an ambitious fiscal stimulus plan promised by the new Democratic president, who wants to urgently release an additional $ 1.9 trillion to limit the repercussions of the Covid-19 pandemic, and these stimulus measures will boost consumption and investment, This is positive for the financial market.

Two days of winnings

In another context, oil prices fell, on Thursday, after data for the sector showed a sudden increase in US crude stocks, which once again fueled fears about demand, driven by the Corona virus pandemic, but hopes of stimulus in the United States curbed the decline in prices.

West Texas intermediate crude futures fell 19 cents, or 0.4%, to $ 53.12 a barrel, after two days of the gains made by crude thanks to expectations of huge spending to mitigate the repercussions of Covid-19 under the administration of the new US President Biden.

According to data from the American Petroleum Institute, crude oil inventories in the United States rose by 2.6 million barrels in the week ending January 15, compared with analysts’ expectations in a Reuters poll of a decrease of 1.2 million barrels.

An increase in stocks

“Crude is marginally low today due to a sudden increase in US oil inventories, but on the other hand, crude is also supported by a weaker dollar and the possibility of a greater US stimulus injection,” said Ravindra Rao, vice president for commodities at “Cuttack Securities”.

And Abizaid: “US crude stocks have been declining over the past five weeks, and this is one of the main factors that keep prices at high levels. If the Energy Information Administration confirms the rise in crude stocks, we may witness a further correction in prices.”

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