The main Wall Street indices rose on Wednesday on investors’ expectations that a partial political agreement will be reached that allows more fiscal aid to be delivered to face the coronavirus crisis.
After abruptly suspending negotiations for a full bill on Tuesday, President Donald Trump urged Congress to pass a series of smaller, more autonomous initiatives that include a rescue package for airlines affected by the coronavirus pandemic.
Shares of airlines soared and those of United Airlines rose 4.3 percent.
“The reason we went down on Tuesday was Trump’s tweet, which he corrected last night. That is why the market started strong and continued to be so. I think there are high expectations that some kind of stimulus deal is going to come sooner rather than later, “said Michael James, CEO of Securities Trading at Wedbush Securities.
Senior White House officials downplayed the possibility of further relief from the coronavirus, while House Speaker Nancy Pelosi denounced Trump for backtracking from talks on a comprehensive deal.
The indices continued to climb after the Federal Reserve released the minutes of its last monetary policy meeting. The minutes showed that US central bankers, who had unanimously agreed in August on a broad new approach to monetary policy, were divided in September on how to apply the new principles.
The Dow Jones industrial average rose 1.91% to 28,303.46 units; the S&P 500 gained 1.74%, to 3,419.45 units, and the NASDAQ Composite added 1.88%, to 11,364.60 units.
Eli Lilly’s shares rose 3.4% after she submitted an application to the US Food and Drug Administration for emergency use of her experimental antibody treatment for Covid-19.
Meanwhile, the Mexican Stock Exchange (BMV) closed this Wednesday with a rise of 1.27%, so its main indicator, the Price and Quotation Index (IPC), closed at 37,418.79 points.
On the day, 122.4 million shares were traded in the IPC, made up of the titles of the 35 largest companies on the stock market.