Wall St ends up sharply reassured by Biden

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WALL STREET FINISHES HIGH

NEW YORK (Reuters) – The New York Stock Exchange ended on a sharp rise of 4.53% on Wednesday, as investors welcomed the momentum gained the day before by Joe Biden’s campaign in the race for the Democratic nomination for the presidential election in November.

The Dow Jones index gained 1,173.45 points to 27,090.86.

The broader S & P-500 gained 126.72 points, or 4.22%, to 3,130.09.

The Nasdaq Composite advanced 334 points (3.85%) to 9,018.09 points.

Distanced in the Democratic primary until “Super Tuesday”, the former vice-president Joe Biden has made up his time and now exceeds his rival Bernie Sanders whose program judged too left by many investors is worrying the markets.

“Today, clearly, there is a” Biden momentum “and perhaps the desire to take advantage of a rebound because of what happened yesterday in the markets,” comments Chuck Carlson, chief investor at Horizon Investment Services.

On Tuesday, the surprise announcement by the US Federal Reserve of a rate cut to counter the effects on the economy of the coronavirus epidemic surprised the markets, which ended down.

It was the first time since the 2008-2009 financial crisis that the Fed lowered its rates between two monetary policy meetings, the next scheduled for March 17 and 18, which underscores the urgency of its decision.

Chuck Carlson stresses, however, that the question of the new coronavirus remains on everyone’s lips on Wall Street and fears that it will occupy the minds for a large part of the first half.

“The markets do not like uncertainties and this is probably one of the most uncertain situations that I have seen in a long time,” he adds.

Against the trend, Dollar Tree fell 3.56% after announcing that it expected lower sales and profits in the first quarter.

Conversely, Abercrombie & Fitch jumped 8.98%, with investors hailing better than expected quarterly earnings.

On the exchange side, the dollar takes 0.21% against a basket of reference currencies after reaching the previous day a two-month low and even a low of about five months against the yen. The euro fell around 1.113 dollars.

The dollar’s rebound was buoyed by robust American indicators, be it the ISM services index or job creation in the private sector.

(French version Nicolas Delame)

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