What Impacted the Stock Market Last Week?
Eva MarcilleLast week, thestock marketexperienced a series of ups and downs due to a variety of factors. In this article, we will explore the main events that impacted the stock market and analyze their effects.
U.S. Jobless Claims Rise
The U.S. Department of Labor reported that jobless claims increased to 885,000, which is higher than the expected 800,000. This news caused concern among investors since it indicates that the job market is still struggling due to the pandemic. As a result, the stock market experienced a dip in the days following the report.
Stimulus Package Negotiations
Another factor that impacted the stock market last week was the ongoing negotiations for a newstimulus package. Democrats and Republicans were unable to reach an agreement before the end of the year, causing uncertainty and volatility in the market. However, on December 27, President Trump signed a $900 billion stimulus package, which provided a boost to the stock market and led to a rally in certain sectors, such as technology and healthcare.
Brexit Deal Reached
On December 24, the United Kingdom and the European Union reached a post-Brexit trade agreement. This news was welcomed by investors who feared that a no-deal Brexit would have negative consequences for the global economy. As a result, the stock market experienced a boost, especially in European markets.
COVID-19 Vaccine Rollout
The COVID-19 vaccine rollout continued last week, with more countries beginning to administer the vaccine. This news provided hope for investors who anticipate that the vaccine will help end the pandemic and lead to a global economic recovery. As a result, certain sectors, such as travel and hospitality, experienced gains in the stock market.
Investment Strategies
Given the volatility and uncertainty in the stock market, it is important for investors to have a solidinvestment strategy. One strategy is to diversify your portfolio by investing in different sectors and asset classes. Another strategy is to invest for the long-term and not make decisions based on short-term fluctuations in the market. It is also important to stay informed about market trends and news that may impact your investments.
Conclusion
Last week, the stock market was impacted by a variety of factors, including jobless claims, stimulus package negotiations, Brexit, and the COVID-19 vaccine rollout. While these events caused volatility and uncertainty, investors can mitigate risk by following sound investment strategies, such as diversification and investing for the long-term.
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