- Technology stocks lead the rally.
- AUD/USD weak on a stronger US dollar.
- Capitol disturbances brushed aside by the markets.
Wall Street shrugged aside the recent developments in the US Capitol and surged ahead led by a 2.56 Percent rise in the tech-heavy Nasdaq Composite. Dow Jones, S&P 500, and Russell 2000 clocked gains of 0.69 Percent, 1.48 Percent, and 1.89 Percent, respectively.
Investors are buoyed by the jump in the chances of additional fiscal stimulus after Democrats’ victory in the Georgia runoff Senate elections, thus equaling the Republican numbers; incoming President Joe Biden does not have to rely on Republican support to push forward important decisions.
The US dollar attracted some bids after touching 89.2 on Tuesday, helped by the skyrocketing US Treasury yields as increased fiscal assistance means higher debt burden and more Treasury issuance. Markets also price in the chances of higher inflation. The 10-year yield is near 1.076 Percent, in trading after the US session close.
The Australian dollar trades weaker against the resurgent US dollar. Commodities might also be affected by greenback strength, and in turn, could affect the Australian economy. AUD/USD might witness some pullback after the recent sharp run-up.
Today, equity markets might see continued bullishness as the world’s largest economy seems all set to receive additional stimulus soon.