Last Year's Close
E-mini S&P 500: Settled at 3748.75, up 24.50 on Thursday, 1.45% on the week, 3.46% in December, and 16% in 2020
E-mini Nasdaq-100: Settled at 12,885.50, up 44.00 on Thursday, 1.42% on the week, 4.96% in December, 47.2% in 2020
U.S. benchmarks are all higher, kicking off 2021 just where they left 2020. Fueling the risk-on jolt is a weaker U.S. Dollar; it’s -0.7% against the Chinese Yuan and the Dollar Index is -0.5%. As we discussed in our last note and throughout the year, USD is the sacrificial lamb for the pandemic-ridden economic rebound and its continued weakness will provide for higher asset prices.
Today’s news cycle overshadows the broadly green board. Georgia’s Senate runoff is officially held tomorrow and is squarely on the minds of investors. Republicans must hold onto 1 of the 2 seats up for grabs in order to maintain their majority. We don’t believe markets are ready for a blue sweep and the added uncertainties will spark some volatility at the least. Over the weekend, the Washington Post released a call where President Trump pressured Georgia’s Secretary of State to find votes, but markets seem little concerned with such optics for now.
Additionally, on the economic calendar, Chinese Manufacturing PMI last night missed at 53.0 versus 54.8, and the final December Eurozone reads were also softer. We looked at the final U.S. December read at 8:45 A.M. CT, but the more closely watched ISM follows tomorrow.
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