In a market that is still optimistic about the recovery of the US economy, the star index ends with an increase of 2.05% to 26,269.89 points.
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The New York Stock Exchange finished sharply in the green on Wednesday, the Dow Jones Industrial Average posting the strongest gains, in a market still optimistic about the reopening of the American economy
The Dow Jones, the flagship index for New York, rose 2.05% to 26,269.89 points.
The highly technological Nasdaq gained 0.78% to 9,682.91 points, ending near its historic high reached on February 19.
The widened S&P 500 Index gained 1.36% to 3,122.87 points, also within a stone’s throw of its February record.
“The market hypothesis is that we have hit rock bottom,” said Quincy Krosby, recalling the plunge in New York City in mid-March with the intensification of the Covid-19 pandemic and measures to stem it.
“If a lot of the economic data remains bad, it improves at the margin,” adds Krosby.
This was confirmed Wednesday with the 2.7 million jobs destroyed by private companies in May, according to the monthly survey of the firm ADP.
If this figure remains historically high, it is much lower than that of April (20 million) and less worse than expected by analysts, who expected 9 million jobs destroyed.
Activity in services continued to contract in May. But it has recovered from the plunge in April, which ended more than ten years of growth, according to the ISM professional association index also released on Wednesday.
“In the absence of a second wave of contamination, the US economy is strengthening, albeit at a slow pace,” said Quincy Krosby.
Demonstrations across the United States to protest police brutality against minorities, especially African Americans, have had no impact on the market so far.
However, said Krosby, if these marches, sometimes interspersed with violence and looting, jeopardized the resumption of activity by certain companies, this could weigh in the balance.
The expert also points to the risk of the virus spreading during these demonstrations, which could jeopardize the slowdown of the pandemic and therefore slow the economy.
On the bond market, the 10-year rate on the US debt rose, moving to 0.7508% against 0.6852% Tuesday evening.
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