(Daily Notion): SPX500, NAS100, and US30 Surged Upwards, Next Mover: Upcoming U.S. Data, Number of New Covid-19 cases

NASDAQ 100 (as of Dec 29, 2020 at 2.40 p.m.)

Source: Yahoo Finance

SPX 500 (as of Dec 29, 2020 at 2.40 p.m.)

Source: Yahoo Finance

US30 (as of Dec 29, 2020 at 2.40 p.m.)

Source: Yahoo Finance

It was a great day at Wall Street upon news that President Trump has signed off the $2.3 trillion Covid-19 relief Bill.

As reported by Investing.com, all three major indices closed at record highs with the SPX500 led the way by closing 0.87% higher. The NAS100 followed with a 0.74% rise while the US30 trailed closely behind, with a 0.68% rise.

It must have triggered a collective sigh of relief amongst traders after the uncertainties of the past week around the relief Bill and the Brexit negotiations. Although the Dallas Federal Manufacturing Business Index dropped from 12 to 9.7 the palatable sense of relief and subsequent optimism overshadowed this result.

Travel-related stocks gained a much-needed boost following this positive news, with American Airlines moving up 2%.

Is the Santa Rally here to stay, or is this a short-lived rally? It remains to be seen.

As cited by Investing.com, analyst foresees that persisting worries of the rising Covid-19 cases, as well as upcoming U.S. Senate runoffs in Georgia, could become headwinds. It is also noted the forward price-to-earnings ratio of SPX500 currently stands at 22.2, which is way above the long-term average of 15.3. Traders would also be keeping an eye out for the U.S. New Home Sales and Trade Balance which will be released tomorrow for a gauge on the U.S. economy.

FOLLOWME User Sentiment (as of Dec 29, 2020 at 2.40 p.m.)

SPX500

Short – 85.33%

Long – 14.67%

NAS100

Short – 79.71%

Long – 20.29%

US30

Short – 78.80%

Long – 21.20%