2020-12-17 • Updated
S&P 500 is widely considered as the best measure of the US stock market and an indicator of the overall US economic health. Therefore, you can look at the performance of the S&P 500 and get a good overview of what was going on during the chosen period.
S&P 500 dropped enormously at the beginning of 2020 amid the market crash after the Covid-19 outbreak. The stock index experienced an unprecedented swing down from 3 400 to 2 200. Since then, S&P has regained its losses and even outrun as the market shock passed and businesses started to adapt to the new conditions.
The year-end is getting closer, but most economies still haven’t been able to return to pre-crisis levels. Analysts predict that some countries will fully recover only by the end of 2021, while others only by 2022. Luckily, widespread vaccinations have already started, and that will help to take the Covid-19 spread under control. It added optimism to the market, and S&P 500 surged on hopes for further economic growth and prosperity. In fact, stocks always fall before a recession and rise ahead of recovery.
According to Goldman Sachs, the stock rally will continue in 2021 as the global economy will regain pre-pandemic levels after the vaccine rollout. The price target for 2021 is 4 300 and for 2022 – 4 600! Goldman Sachs explains such a huge increase by a surge in corporate profits next year in the technology, materials, and consumer-discretionary sectors.
Note that to trade S&P 500 with FBS, you need S&P 500-21H, which will expire on March 19.
China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
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