All major market indices set all-time highs this week, energized higher by value stocks and growth stocks equally. The Nasdaq Composite commanded the winning spot with a 2.1% increase and was followed by the small-cap Russell 2000 with +2.0%, broad-based S&P 500 posting +1.7%, and DJI Average print of +1.0%.
Nine of the eleven S&P 500 market sectors added to the progression. The vital energy sector rallied a healthy 4.5%, and the information technology sector increased by 2.8%. The utilities sector with -2.2% was the most vulnerable loser link by a large extent.
There was not one particular catalyst that drove stocks higher. Instead, the definite cumulative result that the week's development had on now bullish traders and investors mindset could rightly explain the gains. In more simplistic terms, the stock market rode a very bullish momentum.
About stimulus talks in Washington, Republican Congressional leadership and some Democrats backed a proposed $908 Billion bipartisan stimulus draft as a starting point for discussions.
It is not for sure that the confused November employment data, which highlighted sluggishness jobs growth, drove lawmakers over the edge yesterday. However, the market behaved as if the news had some negotiating power.
In the U.S. Treasury, the Two-year and Ten-year spread extended by 14 basis points to 83 basis points, touching its highest level ever since late 2017 in confirmation of the stock market's upbeat economic forecast. The Ten-year yield ended the week 13 bps higher at 0.97%. The U.S. Dollar declined by 1.0% to close at 90.82 to attain its lowest price level since April 2018 - Ouch.
Separately, CMS (Customer Management Systems) software from Salesforce fortified it agreed to acquire Slack Technologies, Inc. in a cash-and-stock transaction with a $27.7 Billion business value. Salesforce shares declined 9% this week, given the substantial price tag.
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Technical Analysis and Outlook: The Spooz bounced off the Mean Sup $3,548 and heading to Current Outer Index Rally $3,750, followed by Inner Index Rally $3,820 and Next Outer Index Rally $3,870. The current ''Buy Zone'' and Mean Sup $3,625 stands as an excellent opportunity for buying once the prices drop to this zone.
Upon this backdrop, I reckon that the current ‘equilibrium price’ of Gold…is proximate $2,500 per ounce. This metal's value is well over the current $1,800 price, offering a quite remarkable upward price capacity for the long-term guided investors. In actuality, buying at the price levels shown here: Gold.
Another fantastic week for the crypto market! Many of the significant cryptocurrencies rose to 28% in value—especially Ethereum, XRP, and Litecoin, which showed some impressive gains. Last Monday, Bitcoin reached its highest price ever, but the $20,000 (EUR 16,600) magic value has not yet been reached. Perhaps in this upcoming week? Since the price decline last week, Bitcoin showed to be resilient. Today, as of this writing, Bitcoin prices are up around $500. Will there be more fireworks this weekend? Stay tuned.