NEW YORK – Wall Street closed Tuesday with strong gains and the Dow Jones, its main indicator, shot up 11.37%, its best day since 1933, due to expectations that US lawmakers will soon close an agreement to promote a billionaire fiscal stimulus law that protects the economy against the coronavirus pandemic.
At the end of operations on the New York Stock Exchange, the Dow Jones rebounded an impressive 2,112.98 points, registering the largest absolute rise in its history and standing at 20,704.91 whole, boosted by the colossal advances of Chevron (23%) , American Express (22%), Boeing (20%) or McDonald’s (18%).
The selective S&P 500 rose 9.38% or 209.93 points, to 2,447 integers; and the Nasdaq composite market index, which brings together the largest technology companies, rose 8.12% or 557.18 points, to 7,418 whole.
The New York parquet, which since yesterday has had its headquarters closed to contain the COVID-19, experienced a day of rebound on Tuesday due to expectations of the advancement of an ambitious fiscal stimulus package in the US Congress, where Republican and Democratic legislators have I’ve been negotiating since Sunday.
Senate Democratic Minority Leader Chuck Schumer said Tuesday that “if we were on the five-yard line last night, we are now on the two-yard line,” while the Speaker of the House of Representatives, the Democrat Nancy Pelosi said there was “real optimism” of reaching the agreement in the next few hours.
In the previous session, investors reacted negatively to the lack of consensus between the parties, despite the fact that the Federal Reserve announced that it will acquire unlimited Treasury bonds and mortgage-backed securities to support financial markets, its biggest plan seen to date. , according to analysts.
Wall Street also reacted to the prospect of a relative return to normality suggested by US President Donald Trump, who declared on the Fox News channel that he would like to “open the country” for next April 12, in the sense of ask the population to return to their workplaces despite the coronavirus crisis.
Trump already warned on Monday that “the remedy cannot be worse than the problem” and stressed that the economy, which until now had been his main asset to achieve reelection in the November elections, cannot be allowed to continue deteriorating.
However, the situation in the US is only getting worse and there are more than 50,000 cases of Covid-19 and 600 related deaths, with an epicenter in the state of New York, which, along with others such as California or Illinois, has ordered the closure general business and that almost all workers stay home to contain the spread of the pathogen.
By sector, energy gained a notable 16.31%, followed by industrial and financial (12.75%, both).
In other markets, Texas oil rose as high as $ 24.01 and at Wall Street’s close, gold rocketed to $ 1,663.4 an ounce, 10-year Treasury bond yields rebounded to 0.85% and the The dollar lost ground against the euro, with a change of 1.0782.