Hope On The U.S. Restarts Stimulus

    A group of Democratic and Republican lawmakers on Tuesday proposed a $908 billion stimulus package after months of stalling efforts to revive the economy amid the ravages of the pandemic. It is too early to say whether the plan will be approved. If it works, it could spur more money from U.S. bonds into equities, accelerating the shift that began in November when the Dow Jones Industrial Average posted its biggest monthly gain since 1987with the progress on the vaccine.

    On Tuesday, U.S. stocks rose across the board driven by macro news. Led by technology stocks, the Nasdaq was the strongest performer, up 1.3%. China's manufacturing industry grew at the fastest rate in a decade in November; the U.S. ISM manufacturing index in November was 57.5, in line with expectations. Although it was down from October, it has exceeded 50 for seven consecutive months, indicating that the U.S. manufacturing economy is on the rise. 

    Fed Chairman Jerome Powell reminded members of Congress that despite the promise of vaccine, the severity of the pandemic cannot be ignored, and many small businesses are on the edge of bankruptcy in the winter, and further fiscal incentives may still be needed in the future.