There was a big development in the United States overnight: the US Senate managed to pass legislation to approve President Joe Biden’s $1.9 trillion stimulus bill. The decision came after long hours of deliberation and suggested amendments, and the approval came at 51-50, with Vice President Kamala Harris’s tie-breaking vote in favor of the bill.
This means that now House Democrats will spend the next two weeks or so hashing out the details of the legislation, which could get additional discussion time in Congress. Still, substantial changes are not expected.
Thus, the markets were able to rally on the prospect of stimulus coming to support the US economy quickly and help fund the new administration’s efforts to defeat the coronavirus pandemic.
Sentiment was further boosted by both jobless claims and ADP payroll reports, which exceeded investors’ expectations. It appears that the US labor market is recovering fast. The new stimulus and faster vaccinations will continue to improve sentiment.
US stock indices are going up today, which is hardly surprising in the context of the stimulus bill getting approved and labor data turning out better than expected.
The share value of GameStop and AMC, the two companies targeted in the recent short-squeeze, are up a little compared to yesterday’s decline. Still, interest in them remains broadly lower this week.
The optimism that dominates the markets today is also pushing oil prices up. The value of the black gold is also boosted by efforts by OPEC+ to keep supply limited. The price is approaching $60.
