The purchases have the singing voice one more day in Wall street. Investors are optimistic about the progress in the reopening of the economies and, especially, about the impact of the European Commission to carry out the reconstruction plan for the Old Continent. Expectations that the plan can help a more agile recovery than expected across the Atlantic underpin the comeback.
The great news of the session has been brought by the President of the European Commission, Ursula Von der Leyen, who has proposed the creation of a reconstruction fund of 750,000 million euros based on large-scale debt issuance by the EU, of which the majority (500,000 million) would be sent to the countries hardest hit by the epidemic, as transfers.
Although the negotiation until the plan is finalized will be long, the light begins to be seen at the end of the tunnel and pulls up New York indexes. The Dow Jones it rises 1.1% and exceeds 25,280 points. The S&P 500 earn 0.6% and get 3,010 points. However, the technological Nasdaq it suffers a slight decrease, of 0.15% in the 9,320 points as a result of the cash flow to which some investors proceed in their heavy weights, considering that their business could decrease now that the de-escalation is progressing with a firm pace.
This is how Wall Street opens
In addition, investors wait at the last minute of the American session for the publication of the Beige Book of the US Federal Reserve (Fed), where a clear message of commitment from the central bank to the world’s largest economy is expected to come again. In this sense, the president of the institution, Jerome Powell, has repeatedly shown a cautious tone with the evolution of the economic recovery But he has always been willing to use any tool at his disposal to alleviate the worst effects of the recession.
This Wednesday it has also been known that US lawmakers are moving forward with regulations that would require all companies listed on the US stock exchange to submit to audits reviewable by the Accounting Supervision Board of Listed Companies. A move that would limit the possibility of Chinese companies trading on Wall Street and that comes after the Luckin Coffee scandal.