At around 7 p.m., the Dow Jones index was 0.8% higher. Tech stock exchange Nasdaq rose 0.1%. The broad composite S&P 500 index climbed 0.5%.
The mood among investors on Wall Street was initially cautious due to a record increase in the number of new corona infections in the US. In the past 24 hours, 65,870 new coronavirus infections were reported in the US. That is the highest number in a day since the virus outbreak started. More than 3.1 million people in the US have contracted the virus and over 133,000 deaths have been recorded. Several US states are again reviewing restrictive measures against the virus outbreak.
Americans, wear mouth masks
Wearing face masks and other protective measures against the corona virus are critical to the recovery of the U.S. economy and labor market from the corona crisis, said Federal Reserve director Robert Kaplan, the umbrella of US central banks. According to the central banker, while monetary and fiscal measures are important, it is now vital for the economy to wear mouth masks on a large scale and to enforce health measures to prevent the spread of the virus. “If we do that right, we will grow faster, with lower unemployment,” said Kaplan. The Fed driver thinks the U.S. economy will grow in the third and fourth quarters, but will see a 4.5 to 5% contraction across 2020. He believes that more fiscal stimulus for the US economy is needed.
Trump: second deal with China unlikely
US President Donald Trump today said it was unlikely that the partial trade deal with China would continue. Tensions between the US and the Asian country are too tense for that, he told journalists on board his government plane. “That’s not my head now,” Trump said when new trade deals between the two superpowers are imminent. “The relationship with China has been seriously damaged.”
The US and China closed a partial trade deal early this year after bombarding each other with additional import tariffs for a year and a half. With that they put an end to their trade war. When the deal was signed, they agreed to negotiate for further trade deals. However, tensions between the two countries have started to rise again recently, partly because of Hong Kong.
Quarterly numbers season
In addition, the market was in anticipation of the US quarterly season that will start next week with results from the banks Citigroup, JPMorgan and Wells Fargo. US corporate earnings are expected to have had significant gains in recent times due to the corona crisis. Business expectations for the rest of this year will also receive investor attention.
Gilead
Nasdaq Stock Exchange Stock Exchange Gilead 2.1% higher. The biotechnology group has achieved hopeful test results with its drug remdesivir in corona patients. According to Gilead, clinical trials indicate that the mortality risk of corona patients decreased by 62% after treatment with remdesivir. The US authorities accelerated the use of Remdesivir in May to treat critically ill corona patients. The drug has also been made available in other countries.
Netflix
Netflix also remained popular with investors. Investment bank Jefferies expects even more income for the video streaming service. The Netflix share rose 8.5% and thus set a new price record. This year Netfix was worth almost 70% more on the Nasdaq.
Carnival
Cruisemaatschappij Carnival advanced 8.9%. The group expects that cruise ships of subsidiaries AIDA and Costa Cruises will be able to sail from ports in Germany and Italy from next month.
Chevron en ExxonMobil
Chevron (+ 1.8%) in ExxonMobil (+ 1.9%) were on the rise thanks to the higher oil price. The International Energy Agency (IEA) warned that the rising number of corona infections in the US, among others, could undermine the recovery in the oil market, but predicted a somewhat less sharp drop in demand than previously expected.
Express
Clothing chain Express was raised 4.7%. The company reported that sales are picking up now that most stores have reopened.
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