Wall Street reverses the course after opening in red and the Dow Jones rises 0.42%

Wall Street opened in red this Thursday but reversed its course and the Dow Jones advanced a slight 0.42%, after the losses of previous days that have left the main indicator below 20,000 points, due to panic sales to obtain liquidity in the coronavirus crisis.

An hour after the start of operations on the New York Stock Exchange, the Dow Jones was gaining 84 points, standing at 19,983 integers; while the selective S&P 500 rose 0.63% or 15 points, to 2,413 integers.

The Nasdaq Composite Market Index led the rise, with 2.42% or 169 points, to 7,159 points, driven by the communications sector (1.98%).

The New York parquet lives another somewhat volatile day and the Vix index, known as the indicator of fear, went from shooting 9% in the opening to less than 2% an hour later.

According to analysts, investors are looking in the direction after the latest measures by central banks to protect the economy: the European Central Bank announced last night an urgent program to buy bonds of 750,000 million euros (about 810,000 million dollars).

This is a similar plan to the one the Federal Reserve announced this month to inject a trillion dollars into the American financial system. In addition, the Fed announced last night that it will support money market funds.

Wall Street is still waiting for lawmakers to approve a multi-million dollar fiscal stimulus plan proposed by the Trump administration, which would include deferrals of tax payments, assistance to particularly affected sectors such as airlines or hotels, and the delivery of cash to citizens.

Meanwhile, on the eve there were panic sales to obtain liquidity that, in addition to bringing the stock market down, impacted on safe assets such as public debt and gold, whose prices fell.

At this time, the yield on the 10-year Treasury bond - yield and price operate in reverse - stood at 1.093% and $ 1,491 an ounce of gold.

Operators also react to a negative fact: the number of applications for unemployment benefits in the US it increased above expectations last week, to a total of 281,000 requests.

Among the Dow listed companies, the rise of Disney (6.27%) and the fall of Johnson & Johnson (3.88%), extremes of a list that is constantly changing, contrasted.

In other markets, Texas oil rebounded 11% to $ 22.61 a barrel, while the energy sector rose 1.71%.


Source link