News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cC4v7H https://t.co/uhBNvCTHrW
  • Evergrande USD bondholders say have yet to receive interest due Thursday -BBG
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/J0vSWHaADc
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDrr7M https://t.co/nmP0MX8LGM
  • 🇯🇵 Core Inflation Rate YoY (AUG) Actual: 0.0% Expected: 0% Previous: -0.2% https://www.dailyfx.com/economic-calendar#2021-09-23
  • 🇯🇵 Inflation Rate Ex-Food and Energy YoY (AUG) Actual: -0.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2021-09-23
  • 🇯🇵 Inflation Rate YoY (AUG) Actual: -0.4% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2021-09-23
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/T6CPbFLv9f
  • RT @FxWestwater: $AUDUSD, $AUDJPY Surge Despite Rising Treasury Yields, Looming Evergrande Risks Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/23/AUDUSD-AUDJPY-Surge-Despite-Rising-Treasury-Yields--Looming-Evergrande-Risks.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.c…
  • Heads Up:🇯🇵 Core Inflation Rate YoY (AUG) due at 23:30 GMT (15min) Expected: 0% Previous: -0.2% https://www.dailyfx.com/economic-calendar#2021-09-23
Russell 2000 Gains, S&P 500 Wobbles Following President-elect Biden’s Stimulus Details

Russell 2000 Gains, S&P 500 Wobbles Following President-elect Biden’s Stimulus Details

Thomas Westwater, Analyst

Russell 2000, S&P 500, Treasury Yields, Biden Fiscal Stimulus Proposal – Talking Points

  • US equities trade mixed on President-elect Joe Biden’s $1.9 trillion stimulus plan
  • Small cap stocks outperform following news, Russell 2000 futures rise as S&P 500 wobbles
  • Passing plan through Congress is a top priority for incoming Biden administration

Markets are digesting President-elect Joe Biden’s stimulus plans after details surrounding the incoming administration’s economic agenda crossed the wires shortly after the New York closing bell. The incoming proposal calls for a $1.9 trillion aid package to combat the ongoing Covid-19 crisis, a figure that many Democrats pushed for last year during negotiations on prior relief bills. Treasury yields rallied into the announcement but struggled to find further momentum. The 10-year yield climbed as high as 1.134% before levelling off.

US equity index futures reacted mixed on the news. Small cap stocks appear to be trading exceptionally well to the announcement, with the Russell 2000 (E-mini futures) leading the move higher. The stimulus relief package is set to be a top priority for Congress once President-elect Biden is in office. The plan includes increased direct payments of $1,400 per individual, on top of the recently passed bipartisan relief bill granting $600 payments for certain individuals. Enhanced unemployment benefits, set to expire in mid-March, will also be included with the amount increasing from $300 to $400 and extending through the end of September.

It remains unclear if the plan will have enough support to move through Congress, particularly in the Senate. However, the recent wins in the Georgia runoff elections give Democrats a 50-50 vote if party lines are followed, but a tiebreaking vote from Vice President-elect Kamala Harris could secure passage of the bill. Details on Biden’s package also include increased funding to schools, small businesses, vaccination efforts, and state aid. A raise to the minimum wage to $15 per hour may see some strong resistance from Republicans along with the increased funding for state and local governments.

Russell 2000, S&P 500 E-mini Futures – 5 Min Chart

S&P 500, Russell 2000 stimulus chart

Chart created with TradingView

S&P 500 TRADING RESOURCES

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwateron Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES