US, WASHINGTON (ORDO NEWS) — The New York Stock Exchange opened clearly in the red Friday in a market still weakened by the crisis of the new coronavirus.
Around 2:15 p.m. GMT, the Dow Jones Industrial Average fell by 3.55%, to 21,750.81 points. The flagship Wall Street Index remains on three consecutive bullish sessions.
The Nasdaq, with a strong technological coloring, yielded 3.05%, at 7,560.06 points, and the broad index S&P 500 lost 3,716%, at 2,546.86 points.
Wall Street had climbed Thursday despite the record increase in the number of unemployment insurance claimants in the United States. The vote in the Senate of a titanic stimulus plan for the American economy to face the consequences of the pandemic had supported the place: the Dow Jones had taken 6.38% and the Nasdaq 5.60%.
Despite their decline at the start of the session on Friday, the main indices of the New York market were moving towards a strong weekly increase, after their worst week since the financial crisis of 2008.
They were notably brought this week by the adoption in the Senate of the stimulus plan, which provides for more than 2,000 billion dollars.
This text must be approved by the House of Representatives on Friday, then promulgated by the American president, Donald Trump.
It provides provisions to help households: a check for $ 1,200 per person provided that its annual income does not exceed $ 75,000 and a check for $ 2,400 for married couples who earn up to $ 150,000.
US Secretary of the Treasury Steven Mnuchin said on Fox News Friday that he wants to send the aid as soon as possible.
Observers agreed, however, that the market remained under pressure as the United States now has more documented cases of coronavirus than any other country in the world and that the economy of the world’s leading power is slowing down.
“Unfortunately, the market is not concerned with what has happened but with what is to come,” said Patrick O’Hare of Briefing.com.
“The report on unemployment benefit claimants yesterday clearly showed that there will be a lot of bad economic news in the coming weeks despite the economic stimulus packages.”
Among the indicators, consumer confidence tumbled in March, registering its fourth largest drop in half a century, according to the final estimate from the University of Michigan survey released on Friday.
Household incomes, for their part, grew faster than spending in the United States in February, according to figures from the Labor Department. But these data do not yet reflect the massive impact of the new coronavirus on the American economy.
Inflation remained stable at + 0.1%, in line with analysts’ expectations.
On the bond market, the 10-year rate of American debt fell sharply, standing at 0.7488% against 0.8447% the day before at the close.
Among the values of the day, Boeing (-10.5%), Chevron (-7.4%) and Disney (-6.9%) were in strong decline, pulling the Dow Jones down.
Cruise lines Carnival and Norwegian Cruise Line each fell about 13%.
Lululemon lost 4.7%. The yoga pants specialist reported better than expected quarterly results but also announced that his sales fell sharply in the second week of March with the closure of his stores in Europe and the United States due to the coronavirus.
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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.