Investors are uncertain about the market trend.

Stock index values saw a slight increase in the first week of 2021, driven by factors such as the Georgia runoff elections and efforts to roll out vaccines. However, the recent turmoil in the U.S. following the Capitol riot and ongoing impeachment proceedings have dampened investor optimism, leading to a flattening out of stock prices.

At the start of trading today, the Dow Jones dropped by 31 points (0.1%), the Nasdaq Composite saw a minor 0.2% increase, and the S&P 500 remained slightly above the neutral line. The U.S. consumer price index rose by 0.4%, aligning with projections from Dow Jones analysts.

President-Elect Joe Biden, set to be inaugurated next week, is expected to unveil his economic plans in a report to be released tomorrow. Analysts anticipate discussions on potential stimulus packages for the U.S. economy.

Commenting on the possible fiscal measures, Jason Draho, head of Americas asset allocation at UBS Global Wealth Management, mentioned, “An approximate USD 500 billion fiscal package including additional stimulus checks, extended unemployment benefits, and funding for healthcare and vaccine distribution could significantly bolster economic growth in 2021.”

With COVID-19 cases still increasing despite vaccination efforts, analysts are uncertain about when the economy will stabilize definitively. However, some experts believe that once a substantial portion of the population is vaccinated, the economy will be primed for a strong recovery.

Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management, stated, “The U.S. economy is projected to benefit from fiscal and monetary stimulus in 2021 alongside the waning impact of the pandemic. Pent-up demand in sectors affected by COVID-19 and rebuilding of inventories are expected to boost job creation.”