Shares rose on Wednesday on the New York Stock Exchange following the announcement of an agreement 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 as much as 5.1% on the day in hopes that the aid package would be approved soon.
It was the first consecutive gain since the coronavirus emergency triggered a brutal asset sell-off five weeks ago.
The Dow Jones Industrials, its main indicator, held firm for the second day in a row 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 the 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 composite index of the Nasdaq market, 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 thus preparing to approve this Wednesday the largest fiscal stimulus package in the modern history of the country 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 since the Dow rose even 6% within minutes of the closing of Wall Street, but a statement by the Democratic senator Bernie Sanders demanding a greater endowment for the social fund partly undermined the confidence of investors.
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Former Federal Reserve Chairman Ben Bernanke said Wednesday that the US economy will experience a rapid rebound after a “very acute” recession.
“If you don’t do too much damage to the workforce, to businesses during the shutdown period then we could see a pretty quick rebound,” Bernanke told CNBC. Bernanke added that the current situation is “much more of a big snowstorm” than the Great Depression.
In other markets, Texas oil rose 2% to $ 24.49 and at the close of Wall Street, gold fell to $ 1,636.90 an ounce, the 10-year Treasury bond yield rose to 0.86% and the dollar lost ground against the euro, with a change of 1.089.