NEW YORK – Wall Street closed with strong gains on Tuesday and the Dow Jones, its main indicator, soared 11.37%, its best day since 1933, on expectations that US lawmakers will soon close a deal to boost a multi-million dollar fiscal stimulus law that protects the economy against the coronavirus pandemic.
At the end of the operations on the New York Stock Exchange, the Dow Jones rebounded an impressive 2,112.98 points, registering the highest absolute rise in its history and standing at 20,704.91 integers, 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 composite index of the Nasdaq market, which brings together the largest technology companies, rose 8.12% or 557.18 points, to 7,418 integers.
The New York park, which since yesterday has its headquarters closed to contain COVID-19, experienced a rebound day this Tuesday due to the expectations of progress of an ambitious fiscal stimulus package in the US Congress, where Republican and Democratic legislators have been trading since Sunday.
The leader of the Democratic minority in the Senate, Chuck Schumer, declared Tuesday that “if last night we were on the five-yard line, now we are on the two-yard line,” while the Speaker of the House of Representatives, the Democrat Nancy Pelosi, noted that there was “real optimism” to reach 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 the financial markets, its largest plan seen to date , according to analysts.
Wall Street also reacted to the prospect of a relative return to normalcy suggested by US President Donald Trump, who declared on the Fox News channel that he would like to “open the country” by 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 cannot be allowed to continue to deteriorate, which until now had been his main asset in achieving reelection in the November elections.
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 together with others such as California or Illinois, has ordered the closure general business and that nearly all workers stay home to contain the spread of the pathogen.
By sectors, energy gained a notable 16.31%, followed by industrial and financial (12.75%, both).
In other markets, Texas oil rose to $ 24.01 and at the close of Wall Street, gold was skyrocketing to $ 1,663.4 an ounce, the 10-year Treasury yield rebounded to 0.85% and The dollar lost ground against the euro, with a change of 1.0782.