Data released in the United States today showed that Consumer spending rose to its highest level in over 7-months in January.
The figures released by the commerce department, showed that Consumer spending jumped by 2.4% last month.
This was the biggest rise in spending since June last year and brought an end to two-straight months of declines.
Many believe that spending has risen as Americans grow hopeful that further Stimulus cheques will soon arrive once Biden’s $1.9 trillion bill gets passed.
Both the NASDAQ and S&P 500 were higher on the news.
The House set to approve Biden stimulus bill
Sticking with President Biden’s $1.9 trillion stimulus bill, it was reported that The House will look to pass the coronavirus relief package today.
Once passed, the bill will go to the Senate where it will face further scrutiny from both sides of the aisle.
House Democrats hope to get the bill, which includes direct payments to Americans and jobless benefits, to President Joe Biden’s desk for a final sign-off before unemployment aid expires in 2 weeks’ time.
Many including Treasury Secretary Janet Yellen, have recently stated the importance of the bill in helping the United States to recover from COVID-19.
Gold, Bitcoin down to end the week
Gold prices fell to their lowest level since June last year, as investors continued to move away from the safe haven commodity.
Prices in gold have been gradually falling ever since recording highs of $2,075 back in August.
For the month, gold has been down over 6.5% which is the worst month since November 2016 when prices fell 7.2%.
Along with gold, Bitcoin also looked set to end the week in red, after starting the week setting multiple highs.
As of writing BTCUSD was trading at $47,195.
Quote of the day – “What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.”– William O’Neil
Senior Market Analyst