Revenue from IPhone sales dropped in 2020, but Apple focuses now more on its services, which will bring the company more benefits in 2021.
Will S&P 500 reach all-time high?
2020-08-10 • Updated
It has been climbing up for the 9th day in a row. Look for trade ideas.
Why is it important?
Let’s start with the fundamentals. It’s a common fact that the S&P 500 is a so called benchmark of the US economy. Thus, when the US economy gets under threat, the S&P 500 tends to dip down. As you might know, US-China trade talks are scheduled for this week. This agreement is widely watched by all the market participants, as it will impact the overall sentiment.
Today Bloomberg reported that China imposed sanctions on US officials in reply to the US actions over Hong Kong's leader Carrie Lam. It definitely adds more pressure on the Sino-Americans tensions. However, investors shrugged off that news and continue buying the S&P 500. Maybe this year is so filled with negative news that people’s reaction has weakened.
Another reason, which may weigh on the US economy, is disputes between Democrats and Republicans over the fiscal stimulus package. The US president Donald Trump made executive orders to speed up their agreement. However, discussions continue. And, again, it seems it doesn’t bother investors so much.
Wells Fargo Securities thoughts on S&P
According to Chris Harvey, head of equity strategy at Wells Fargo Securities, one thing still can stop the S&P 500’s rally. It is negative interest rates, which officials may impose again. Wells Fargo Securities set the price target at 3 388 for the S&P 500. Harvey claimed that the stock index may reach this level before further contraction as elections in November may add headwinds.
Some analysts believe that the Federal Reserve is interested in depreciating the US dollar. Therefore, multinational corporations will get a boost as people will try to escape from the currency, which is losing its value every day. So, the S&P 500 should gain on that.
The S&P 500 is approaching the all-time high at 3 390. All the moving averages are in descending order, that indicates a really strong uptrend. If the price goes above 3 390, it will surge to the key psychological mark at 3 500. Nevertheless, the move below the low of August 7 at 3 325 may push the stock index lower to the low of August 4 at 3 270. Follow further news!
Good news for Tesla! The tech giant is going to benefit from Biden’s presidency as the new president stated the objective to make the USA the leader in electric vehicle production.
Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!
U.S. stocks are set to open lower later, on a combination of the pandemic news and the downbeat news from Tech’s Old Guard late on Thursday.
Oil fell below $52.00 because investors expect a weaker oil demand amid rising Covid-19 infections and new lockdowns.
Asian equity markets traded cautiously after the mixed lead from Wall St where most indices stalled at record levels