Wall Street Tunnel

Wall Street Tunnel: Light at End or the End Invisible

Financial conditions of the world markets seem to have stabilized in view of the bearish phase of the last few months amidst the news of vaccines emerging from virtually every nook and corner of the world. While some stocks have responded aggressively, some have still been playing very cautiously. 

With the Dow Jones index pegged at an average of 30,000 and S&P Index 500 and Russell 2000 not showing any signs of encouragement, investors have been primarily banking on Joe Biden’s racing to the throne. With masses pinning their expectations on improvement in Policy regulations and changes in the existing governance, it has only encouraged the jobless sentiments. 

Claims from companies like Pfizer stating their vaccine has a higher success rate are yet to prove their mettle as the question remains, ‘Is it about vaccines or getting vaccinated?’ As cited by Chief of Investment David Albrycht at Newsfleet,

To be certain that the world will be back to normal by mid-next year because a vaccine is available is an aggressive assumption.

Pfizer’s news has come as a solace to the investors who had entirely given up on the idea of Wall Street recovery apprehending economic recession. Another opportunistic perspective is the investors’ risk-taking ability that has only got accelerated with this optimistic news getting disseminated. 

While 58% of Americans are willing to get vaccinated, 42% deny the possibility of stating safety reasons and citing reasons for the hasty development timeline. Considering that the vaccine is a great success, its availability to the general masses is another point of view to consider as the frontline warriors are the obvious prior beneficiaries. So, the S & P 500 index reaching 4,050 by the end of 2021, up about 13% from its current level, could be estimated.

At best, Bulls will drive investment majors like JPMorgan Chase & Co, Foot Locker Inc., and Whirlpool Corp. The techie and other esteemed giants will continue to farewell, wherein Microsoft, Amazon, Facebook, will rule the roost at NASDAQ. Should there be no peak surge in Covid-19 cases, investors and traders are open to growth in earnings and revenues, and so Wall Street could hold the hope of light to stock aspirants.

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Stephanie Dobbs

Stephanie Dobbs has been a news writer for well known local newspapers and online publications for a decade. Now, she is a sub-editor at FinanceThrive and cover latest happenings of world of finance, business, banking and more. In her free time, she loves to learn technical analysis of market.

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