The Lunar New Year | Daily Market Update

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Wednesday, February 10, 2021

Daily Insights

US streak ends at 6 days

  • US stocks opened higher after Consumer Price Index (CPI) data reveals inflationary pressures remain benign.
  • European markets are mixed in midday trading.
  • Asian stocks were strong overnight with the Hang Seng Index reclaiming the 30,000 mark for the first time since January 25, 2020.

Year of the Ox

  • The Lunar New Year is this weekend and with it comes the year of the Ox.
  • This is the third best Zodiac sign for the S&P 500 Index on average, as it gained more than 20% twice previously in 1997 and 2009.
  • Although we don’t suggest investing based on Zodiac signs, we take a closer look at this later today in a fun LPL Research blog.

Technical update

  • Large cap indexes were little changed yesterday; however, the small cap Russell 2000 Index pushed 0.4% higher to close at a new record high.
  • The Russell 2000 is now 41% above its 200-day moving average, the most ever, and has outperformed the S&P 500 by 42% since the March 2020 lows.

COVID-19 news

  • The United States reported 93,000 new COVID-19 cases on Tuesday, down 19% week over week as the rate of decline has accelerated to about 24% per week (source: Johns Hopkins). https://coronavirus.jhu.edu/
  • The 7-day average of new cases has fallen by 57% from its peak.
  • Cases in Spain have fallen since the post-holiday spike, improving the broader picture for Western Europe.
  • The United Kingdom continues to report a decline in cases, with the 7-day average down 71% from the January 9 peak.

 

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