S&P 500 darts to fresh all time highs as risk sentiment recovers

  • S&P 500 prints fresh highs as market sentiment to imminent tapering is dialled down. 
  • The FDA has approved the COVID-19 vaccine developed by Pfizer Inc PFEand BioNTech.

US stocks are flying high once again as risk sentiment improves in a dovetail fashion. Both FDA vaccine approvals as well as dialled down expectations of a Federal Reserve taper announcement have lifted spirits on Wall Street.

At the time of writing, the Dow Jones Industrial Average has climbed 0.7% to 35,380.85, with the S&P 500 up 0.27% and Nasdaq higher by 1.57%. Energy, communication services, and financials have been leading gainers while the utilities sector has been the steepest decliner.

Things kicked off on the bid following Friday's reaction to Dallas Federal Reserve President Robert Kaplan's comments.

Kaplan who has been among the US central bank's most forceful supporters for starting to reduce support for the economy said on Friday that he may need to adjust that view if the Delta variant of the coronavirus slows economic growth materially.

His comets have helped the market to second guess this Friday's highly anticipated Jackson Hole whereby the Fed's chairman, Jerome `Powell, is speaking. 

Powell has been expected to make an announcement over the timings of a tapering of the central bank's asset purchases. 

The event evokes the "Taper Tantrum" of 2013, when interest rates spiked higher and share prices tanked in reaction to then-Fed chair Ben Bernanke discussing its bond-buying program.

However, investors are less concerned about this week's event whereas Wall Street had otherwise been on high alert to the prospects of tighter money conditions and an announcement there of sooner than later. 

Meanwhile, the markets have also been given a shot in the arm as investors digest the announcements of full FDA approval of a COVID-19 vaccine.

The US Food and Drug Administration (FDA) granted full approval to the COVID-19 vaccine developed by Pfizer Inc PFEand BioNTech SE BNTX in a move that could accelerate inoculations in the United States.

This will be expected to raise the number of vaccinations as per population given that it will help to remove scepticism over the vaccination which opens the door to more mandates. 

Pfizer and U.S.-listed shares of BioNTech were up 2.7% and 8.3%, respectively.

Rival Moderna Inc MRNA gained 5.9%.

S&P 500 technical analysis

Following the strong bullish candle formation printed last week, as eclipsed in the chart above, the market has gone on to rally to fresh highs.

More of the same can be expected for the days ahead so long as the old highs hold as support. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.


GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.


Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!