Wall Street ends in extremis in the green on the hopes of an American recovery

Published on : 19/11/2020 – 22:50

New York (AFP)

The New York Stock Exchange ended in extremis on a positive note Thursday after two days of losses, thanks to the hope raised by a resumption of negotiations on a fiscal stimulus plan in the United States.

According to final results at the end of the year, the Dow Jones lead rose 0.15% to 29,483.23 points and the S&P 500 expanded 0.39% to 3,581.87 points. The high-tech Nasdaq gained 0.87% to 11,904.71 points.

At about an hour from the close, the Dow Jones, which had traded in negative territory throughout the session, regained strength when it was learned that the US Congress had resumed negotiations to try to find a compromise on a new plan. economic aid.

This resumption of talks comes as the surge in Covid-19 cases is accompanied by new restrictions including school closures in New York.

“It would be an important event, even if it is already a little integrated in the courses, if we start to talk about stimulus again”, underlined Karl Haeling of LBBW, noting however that the market had “not jumped” to this information.

According to him, “it seems that the market needs to calm down a bit after the buying frenzy that started just before the election”. Wall Street broke records earlier this week, optimistic about the coming of vaccines.

New aid is considered vital by most economists, in the midst of a fuzzy transition period between Donald Trump and Democrat Joe Biden. The White House has now given Congress free rein.

The president of the Central Bank (Fed) of Dallas Rob Kaplan also warned that with the resurgence of the virus, the economic outlook was “down”, even referring to “negative growth, over one quarter or even two”.

Mixed economic indicators had started Wall Street in the red. Unemployment registrations began to rise sharply last week.

Some 742,000 people registered as unemployed between 8 and 14 November against 711,000 the week before.

Moreover, in the highly industrial region of Philadelphia, manufacturing activity slowed down even if it remains positive.

The Nasdaq and the tech industry have taken the lead. Tesla finished up 2.60%, nearing $ 500 per title at the close and hitting an all-time high in the session. Electric vehicles have been on the rise with the announcement by British Prime Minister Boris Johnson of a ban on gasoline and diesel cars in the UK as early as 2030.

US department store chain Macy’s had a roller-coaster day, ending up 2.11%, after posting a smaller-than-expected quarterly loss.

Despite the rise in equities, Treasury bonds, a safe haven, continued to be in demand, dragging their yield down. The rate on 10-year US Treasuries fell 3.38% to 0.8407% from 0.8701% the day before.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.