By Eurasia Business News – December 17, 2020
Manhattan, New York City – Photo credit : Pexels
The New York Stock Exchange opened higher on Thursday, buoyed by the increasingly clear prospect of an agreement in US Congress on a stimulus package that could support a still fragile economic recovery.
A few minutes after the start of trading, the Dow Jones index gained 162.2 points, or 0.54%, to 30,316.74, the Standard & Poor’s 500 rose 0.6% to 3,723.46 and the Nasdaq Composite took 0.64% to 12,739.38 points.
The S & P-500 and Nasdaq set records in early trading and the Dow is only a few points off its all-time high on Monday.
In the aftermath of the US Federal Reserve’s renewed promise to maintain its injections of liquidity into the economy and the markets for a long time to come, investors are welcoming the latest encouraging statements from congressional officials on the proposed $ 900 billion stimulus plan (736 billion euros) that Republicans and Democrats discuss.
Hopes for the new stimulus package have become the latest catalyst for a market rally that has sent the S&P 500 up 15% this year, despite the economic setback triggered by the coronavirus pandemic.
A compromise between the two camps would be all the better received as the economic situation in the United States continues to deteriorate: jobless claims recorded an unexpected increase last week to 885,000 and the Covid-19 death rate is still rising.
On the China-U.S. Conflict, Robert Lighthizer, the United States Trade Representative, said President-elect Joe Biden should insist that China continue to comply with the ‘phase 1’ trade agreement reached under the Trump administration. In addition, the US and the UK are said to be in talks on a deal to reduce trade tariffs, which would boost the transatlantic trade and be good for maritime transportation.
The US Federal Reserve did not change its monetary policy on Wednesday evening, after its last meeting of the year, but it did try to reassure markets that it intends to maintain its massive support until the US economy has overcome the current health crisis. The Fed boss said he was worried about the next 4 to 5 months, but he then forecasts strong growth in the economy in the second half of 2021. He estimated that the additional budget support from the Federal state was strongly justified, while a $ 900 billion deal is being negotiated in Congress.
At values, Moderna earns 2.09% before the meeting of a committee of independent experts from the Food and Drug Administration (FDA) which must debate the safety and effectiveness of its vaccine against the coronavirus. Ahead of this today’s crucial meeting, the US drug agency released an encouraging expert report, saying Moderna’s vaccine did not present “any specific safety concerns.”
The consulting giant Accenture jumped 9.01% after beating the consensus and revising its annual turnover forecast upwards, teleworking favoring its digital activities.
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