US Stock Market Soars... S&P 500 Surpasses 3700 for the First Time (Update)

Strong Momentum on Potential Stimulus Bill Agreement
COVID-19 Vaccine Effectiveness Also Reflected
Experts Predict Possible Reach of 4500 Next Year

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The S&P 500 index in the New York stock market surpassed the 3700 mark for the first time ever. This is attributed to the start of COVID-19 vaccinations in the UK and renewed optimism over the US stimulus bill negotiations. There are also forecasts that it could reach as high as 4500 next year.

On the 8th (local time), the S&P 500 index closed at 3702.25, up 0.28% (10.29 points). The S&P 500 has risen by 15% so far this year. The Dow Jones Industrial Average and Nasdaq also showed gains. The Dow closed at 30,173.88, up 0.35% (104.09 points), and the Nasdaq closed at a record high of 12,582.77.

Progress in the US Congress stimulus negotiations was positive for the stock market. Senate Republican Leader Mitch McConnell proposed an agreement excluding local government aid, which has been a contentious issue between parties, while including the corporate liability protection clause he has emphasized, increasing the likelihood of a deal. This is interpreted as a mutual concession to finalize negotiations within the year.

Following the start of COVID-19 vaccinations in the UK, Pfizer’s stock price rose 3.2%, reaching its highest level in two years after meeting the US Food and Drug Administration (FDA) emergency use authorization criteria, while its partner BioNTech’s stock also rose 1.9%.

Regarding the stock price rally, Matt Lloyd, Chief Investment Strategist at Advisor Asset Management, told CNBC that "the overall mood is optimistic, with unmistakably positive news."

Expectations for further gains are also growing. CNBC reported that in its own survey of market experts, respondents predicted an 8-22% increase in the S&P 500 next year. This means the S&P 500 could reach the 4000-4500 range.

This content was produced with the assistance of AI translation services.