Economy Wall Street ends clearly in the green, renewed hope...

Wall Street ends clearly in the green, renewed hope in the market


The New York Stock Exchange (NYSE) on March 19, 2020, on Wall Street in New York City (AFP / Johannes EISELE)

Wall Street finished sharply higher on Wednesday, as investors displayed cautious enthusiasm for a possible slowdown in the coronavirus pandemic in the United States and around the world.

Its flagship index, the Dow Jones Industrial Average, climbed 3.44% to 23,433.57 points.

The highly technological Nasdaq gained 2.58% to 8,090.90 points and the S&P 500, which represents the 500 largest companies on Wall Street, appreciated by 3.41% to 2,749, 98 points

“The virus may have reached a peak or, at least, is approaching it, which gives hope to investors that, by the end of May, economic activity can truly resume,” said Karl Haeling of LBBW.

The coronavirus has already killed nearly 14,000 people in the United States and more than 86,000 worldwide.

If New York State, the epicenter of the pandemic in the United States, has recorded a new death record in 24 hours, the progression of the virus stabilizes, said Wednesday Governor Andrew Cuomo.

However, “there are still a lot of uncertainties” that could capsize the stock market at any time, warns Haeling.

“The jagged market is the new standard and it will remain so until the volatility does not fall much lower,” predicts the expert.

The VIX index, which measures volatility on Wall Street, fell more than 7% on Wednesday.

In addition, the Federal Reserve published on Wednesday the minutes of its surprise meeting on March 15, where it had decided to cut rates, bringing them back into a range of 0 to 0.25%.

The members of the Fed’s monetary committee then deemed that the uncertainty linked to the pandemic posed a “serious danger to the economic outlook”.

They noted, however, that “the current situation is not directly comparable to the financial crisis of the previous decade”, saying that the negative effects may be less lasting.

– Sanders throws in the towel –

Another factor that allowed New York indices to consolidate their gains Wednesday: the announcement by Vermont senator Bernie Sanders that he was ending his campaign for the Democratic nomination for the American presidential election.

The move effectively defeats rival Joe Biden, who will face Donald Trump in November.

Mr. Sanders had set himself up as a Wall Street slayer, promising an in-depth reform of the financial system which frightened certain barons of the New York Stock Exchange.

Its abandonment “helped the market today, but it doesn’t fundamentally change the outlook,” said Haeling.

“The main question will be how much Bernie Sanders will now support Joe Biden,” he added.

On the bond market, the 10-year rate on the American debt increased, settling around 20:35 GMT at 0.7691% against 0.7122% at the previous closing.

Among the values, Twitter jumped 8.8%. Its boss-founder Jack Dorsey announced Tuesday that he would donate $ 1 billion to help fight the coronavirus.

Amazon took 1.6%. According to several American media, the online commerce giant will suspend from June its Amazon Shipping delivery service, a direct competitor of FedEx and UPS.


dho / lth



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