Shares rose on the New York Stock Exchange on Wednesday following the announcement of a deal in the United States to stimulate the economy hit by the coronavirus crisis.
The S&P 500 was up 1.2% at the end of the day, after gaining up to 5.1% on the day in the hope that the aid package will be approved soon.
It was the first straight profit since the coronavirus emergency triggered a brutal asset liquidation five weeks ago.
The Dow Jones Industrials, its main indicator, held firm for the second consecutive day and rose 2.39% – more than 13% in two days – after Democrats and Republicans reached an agreement on the economic stimulus package in Washington. intended for workers and companies to alleviate the COVID-19 crisis and which is valued at $ 2 billion.
At the end of operations on the New York Stock Exchange, the Dow Jones rose 495.64 points to 21,200.55 integers, but the discordant note was the Nasdaq composite market index, which brings together the largest technology companies, which subtracted a 0.45%, up to 7,384.29 integers.
Investors expect markets to remain volatile until the number of new coronavirus cases peaks.
In this context, the United States Senate is preparing to approve this Wednesday the largest fiscal stimulus package in the country’s modern history to try to counteract the effects of the coronavirus pandemic, which could lead the economy to fall into recession.
This is well-received by the markets as the Dow was even up 6% within minutes of Wall Street’s close, but remarks by Democratic Sen. Bernie Sanders demanding a larger endowment for the social fund partially undermined investor confidence.
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Former Federal Reserve Chairman Ben Bernanke said Wednesday that the US economy will experience a rapid rebound after a “very sharp” recession.
“If you don’t do too much damage to the workforce, to companies during the shutdown period then we could see a rebound pretty quickly,” Bernanke told CNBC. Bernanke added that the current situation is “much more of a great snowstorm” than of the Great Depression.
Elsewhere, Texas oil rose 2% to $ 24.49 and at the close of Wall Street, gold was down to $ 1,636.90 an ounce, 10-year Treasury bond yields rebounded to 0.86% and the dollar lost terrain against the euro, with a change of 1,089.