(DAILY NOTION): Wall Street Continues Its Upward Streak, Next Mover: Outcome of Fed Meeting, Biden Stimulus Package

NASDAQ 100 (as of Feb 3, 2021 at 12.55 p.m.)

Source: Yahoo Finance

SPX 500 (as of Feb 3, 2021 at 12.55 p.m.)

Source: Yahoo Finance 

US30 (as of Feb 3, 2021 at 12.55 p.m.)

Source: Yahoo Finance

Wall Street maintains its streak as all three major indices closed higher. The US30 led the pack as it gained 1.57%, while the NAS100 rose 1.56% and the SPX500 increased by 1.35%.

Overall, the gains in the broad market were led by the financial stocks, which benefitted from a slowing infection rate. The Financial Times reported that the U.S. has less than 1 million new cases over the last week, which is the first time it has achieved that since November.

A risk-on sentiment is clearly building up in the market, as both Amazon and Google’s parent company, Alphabet Incorporated beat expectations in their latest earnings report. To date, 97% of technology companies have surpassed expectations, as reported by the Institutional Brokers Estimate System (IBES) from Refinitiv.

Furthermore, the shares of GameStop dipped 60%, leaving many to wonder if the battle of Wall Street versus Main Street is nearing an end. The CBOE Volatility Index also showed a decrease to further highlight this sentiment. Other than these, traders will likely to be taking cues after the two-day U.S. Federal Reserve (Fed) meeting wraps up today.

More importantly, as the U.S. Senate took steps to fast-track President Biden’s stimulus package without Republican votes, the limelight shines again on the $1.9 trillion stimulus package and as it does, building a sense of optimism in the market.

Overall, Wall Street seems determined to regain its upward streak, so let’s watch how this story unfolds over the remaining days of the week.

FOLLOWME User Sentiment (as of Feb 3, 2021 at 12.55 p.m.)

SPX500

Short – 79.60%

Long – 20.40%

NAS100

Short – 81.50%

Long – 18.50%

US30

Short – 76.13%

Long – 23.87%#BidenStimulus#