Wall Street closed Wednesday higher on a day that started shyly. The Dow Jones recovered 3.6%; the S&P, 3.5% and the Nasdaq technology companies, which started out negative, ended up rising 2.6%, while the European markets closed with losses due to the lack of agreement in the Eurogroup to respond jointly to the pandemic. The United States has exceeded 419,000 infected and 14,262 deaths, according to Johns Hopkins University, in a week that according to White House health experts will be critical of deaths from the outbreak. However, the reduction in hospitalizations in New York seems to have encouraged stock indices.
This Tuesday, Wall Street ended with losses after having started the session with force, in a day of great volatility. Even though there was some good news from European countries that are beginning to flatten the curve or glimpse when it will be possible to return to normal in their countries, the US panorama prevented the parquet from moving forward. However, New York, the epicenter of the outbreak, registered a new record of deaths from coronavirus in the last 24 hours, with 779 deaths, totaling 6,268 deaths in the State, most of them Latino and African-American. Governor Andrew Cuomo said Wednesday in his daily press conference that, despite the bad numbers, there is a “downward trend” in hospitalizations.
Meanwhile, Congress and the White House are already negotiating a new rescue plan. Treasury Secretary Steven Mnuchin is in talks with lawmakers to push ahead with an additional $ 250 billion bailout plan for the small business loan hit by the economic slowdown. This new wave of stimuli would add to the $ 350 billion included in the $ 2.2 trillion stimulus bill passed in late March, making it clear that even the most powerful economic bailout plan in US history it is insufficient in the face of this crisis.
The Democratic leader of the House of Representatives, Nancy Pelosi, held a teleconference on Monday with her colleagues and the former president of the Federal Reserve, Janet Yellen. The former Fed leader projected that the unemployment rate in the US will reach 13%, according to reports The Washington Post citing anonymous sources who participated in the call. Tomorrow new data on unemployment applications will be released. In the last two weeks, almost 10 million people have applied for state benefits, a figure unprecedented in the history of the world’s leading power.