U.S. Stock Markets are closed this Monday, in observance of Martin Luther King Jr. Day, a federal holiday that honors the late civil rights activist. This holiday brings an extended break to what has been a positive opening to the stock market in 2019, and it’s an excellent opportunity to reflect on the market so far.
Markets Largely Untouched by Ongoing Government Shutdown
Markets finished off 2018 in a weakened but optimistic position. Many of the large cap gains were wiped off the board due to high volatility in the closing stages of last year. Trade worries, rising federal interest rates, and general economic uncertainty all contributed to what was one of the worst holiday quarters in recent memory.
Confidence returned after Christmas, with one of the best end-of-year trading runs of the modern era.
Positive sentiment has continued into the new year. As we approach the end of January, stocks are still performing well. Two key factors are leading the current wave of confidence.
- Investors are optimistic that rate hikes will more closely reflect the current strength of the economy. The Federal Reserve has put investors at ease, stating that it will be flexible on rates in the coming months.
- Trade tensions appear to be easing, as the U.S. and China reportedly make progress on a new trade deal. Tensions were a significant factor in U.S. Stock Markets slides last year.
All Major Benchmarks Report Gains for the Year to Date
As of January 21, all major U.S. benchmarks are in the green for 2019.
- The NYSE Composite Index is up 6.83% for the year, and 10.10% for the last 30 days.
- The NASDAQ Composite Index is up 7.87% for the year, and 13.01% for the last 30 days.
- The S&P 500 Index is up 6.54% for the year, and 10.51% for the last 30 days.
- The Dow Jones Industrial Average is up 5.91% for the year, and 10.07% for the last 30 days.
The longest government shutdown in history is so far having a negligible impact on equities.
U.S. Stock Markets Reopen Tuesday January 22
U.S. Stock Markets will be open for regular trading on January 22. The early stages of this year will inspire confidence in many private investors. As always, portfolio diversification, due diligence on every investment, and staying up to date with both political and financial news will help you to make the best decisions in the year going forward.
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…