A “new hope” jumps in US stocks

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Economy

Al Ain News
US stocks closed with strong gains, Wednesday, with renewed optimism about the possibility of concluding at least a partial agreement to stimulate new financial stimulus in the United States.

After negotiations on a comprehensive bill came to a sudden halt on Tuesday, President Donald Trump returned later in the day to urge Congress to pass a series of separate small bills that include a package for the aviation sector ravaged by the coronavirus pandemic.

The indicators maintained their gains, after the Federal Reserve issued the minutes of its most recent meeting; The meeting proceedings showed that central bank officials were divided in September on how to implement new principles for monetary policy after they unanimously approved them in August.

Michael James, Managing Director of Equity Trading at Wedbush Securities in Los Angeles, said: “The only reason for our retreat on Tuesday was President Trump’s tweet, which he retracted last night … That is why the market kicked off strongly and remained strong … I think there are overwhelming expectations that the stimulus deal Of some kind, it will crystallize sooner rather than later. ”

Based on unofficial data, the Dow Jones Industrial Average rose 529.45 points, equivalent to 1.91%, to reach 28,302.21 points.

The index “Standard & Poor’s 500” increased by 58.38 points, or 1.74%, to record 3,419.33 points, and the “Nasdaq Composite” index advanced 210 points, or 1.88%, to 11,364.60 points.

The Federal Reserve said last month that interest rates are likely to remain at zero until 2023, pledging not to hurry raising interest rates until inflation reaches 2% and is on the way to an average increase above that level for some time.

On Tuesday, Fed Chairman Jerome Powell warned that the US economic outlook is “heavily blurred” and that insufficient support measures may lead to more bankruptcies for individuals and companies and to a “recession dynamic” in which the weak recovery will eat itself.





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