Wall St. surges on Gilead’s promising pandemic drug, Fed's pledge to revive economy

by   |  VIEW 546

Wall St. surges on Gilead’s promising pandemic drug, Fed's pledge to revive economy

On Wednesday, the 29th of April 2020, all three key indices of Wall St. had played down a steep plunge in US GDP (Gross Domestic Product) growth over the first quarter of the year over optimisms of an effective treatment to contain the pandemic outbreak, while US Fed Chair Jerome Powell’s pledge to sustain measures to ward off the financial fallouts of the pandemic alongside US President Donald Trump’s vow to develop 100 million vaccine for the ongoing pandemic outbreak by the end of the year had added to further investors’ optimism.

As a matter of fact, the US economy had witnessed its steepest contraction of 4.8 per cent since the fourth quarter of 2018 during Q1, 2020 on a year-on-year basis, however the Wall St. investors turned a blind eye to a dismal US GDP data alongside lingering pains of the pandemic as cited by Fed’s Powell after the US drugmaker Gilead Science Inc.

had issued a statement saying its novel antiviral drug Remdesivir had shown great potential to treat critical patients and the Californian pharmaceutical had been mulling an option to set off its Remdesivir as a global-scale weapon to battle past the pandemic outbreak, eventually sending its shares’ prices up by 5.7 per cent.

Meanwhile, referring to US Fed’s unprecedented support to revive the US economy, a partner at Cherry Lane Investments in New Vernon, New Jersey, Rick Meckler said on Wednesday (April 29th), “(The Fed has) really put themselves in the forefront of trying to lead this recovery back.

They have been aggressive and probably are a big reason for some of the strength the market has shown even in light of some really negative economic news”. Citing statistics, on Wednesday’s (April 29th) Wall St.

round off, the benchmark S&P 500 surged 2.66 per cent to 2,939.51, narrowing its gap to a record all-time high reached on February 18th this year, while Dow added 2.21 per cent to 24,633.86 and the tech-heavy Nasdaq Composite jumped 3.57 per cent to wind up the day at 8,914.71.