Share Market saw gains on Wednesday, with Microsoft, Apple, and Amazon all rising more than 1%. These companies have benefited greatly from the shift to remote work and online commerce during the pandemic, and are expected to continue to be major players in the market in the coming year.
Added to that some sectors have seen more gains than others in the new year.
Energy and financial stock
Energy and financial stocks also saw gains on Wednesday, with the energy sector getting a boost from rising oil prices. Crude oil prices have risen in recent weeks due to increasing demand and production cuts from major oil-producing countries.
On the economic front, data showed that the U.S. services sector expanded at a slower pace in December, though it remained in growth territory. The Institute for Supply Management’s non-manufacturing index fell to 57.2 in December, down from 57.7 in November. However, any reading above 50 indicates expansion in the sector.
In other news, the U.S. Federal Reserve held interest rates steady at its latest policy meeting, as expected, and signaled that it will continue to support the economy through its asset purchases. The central bank also reiterated its commitment to using all of its tools to support the economy as it recovers from the pandemic.
Overall, it was a strong start to the year for the share market, with investors appearing optimistic about the economic outlook for the coming year. With the vaccine rollout underway and expected stimulus measures from the incoming Biden administration, there is hope that the economy will continue to recover in the coming months.