US, WASHINGTON (ORDO NEWS) — US stock indexes rose on Thursday after breaking a series of sharp declines amid new global measures to support financial markets affected by coronavirus.
The most active growth was shown by the index of high-tech companies Nasdaq, having increased by 2.3% due to the rise in shares of Amazon.com, Microsoft and Facebook.
The Federal Reserve System (FRS) announced the opening of swap lines with central banks of another nine countries to ensure the smooth operation of the dollar-dependent global financial system. Earlier, the US central bank lowered rates to almost zero and allocated billions of dollars for cheap loans.
The European Central Bank, meanwhile, announced a new program for the purchase of government bonds worth 750 billion euros by the end of 2020.
US President Donald Trump on Thursday said that there are treatments for coronavirus that, in his opinion, can be brought to market in a short time. He was also optimistic about the chances of allocating hundreds of billions of dollars to help the American economy.
“It’s not just the Fed,” said Quincy Crosby, senior market strategist at Prudential Financial. – The point is the budget side of the equation. For the market, the question is how much we really need, and the severity of the crisis suggests that we need volumes that we didn’t even think about at the beginning.”
The median forecast of analysts polled by Reuters indicates an 80% chance of a recession in the United States this year, even taking into account emergency measures.
Bank of America analysts said Thursday that “the American recession is already here.”
The Dow Jones Industrial Average rose Thursday at 0.95% to 20.087.19 points, the S&P 500 – at 0.47% to 2.409.39 points, and the Nasdaq Composite jumped 2.3% to 7.150.58 points.
The capitalization of companies included in the calculation of the S&P 500 index grew by $ 94 billion on Thursday, but since February 19 it has collapsed by $ 8.09 trillion, according to S&P Dow Jones Indices analyst Howard Silverblatt.
The market was supported on Thursday by rising prices for North American WTI crude oil by 25%, a record pace in history. Thanks to this, the energy sector of the S&P 500 grew by 6.8%, the highest among all sub-indices.
Meanwhile, the number of Americans applying for unemployment benefits last week jumped to a maximum of two and a half years as companies in the service sector switched to layoffs due to a pandemic.
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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.