Wall St. torrents on hopes of partial pandemic stimulus deal
by SOURAV D | VIEW 2416
All three key indices of Wall St. round off Wednesday’s market more than 1.5 per cent higher with the trade-sensitive Dow leading the tally of the gains as investors’ hopes of at least a partial pandemic stimulus deal before the November 3 US Presidential election had stepped up appetites for riskier assets. In point of fact, Wednesday’s rally in the Wall St. had almost entirely been goaded by a series of upbeat tweets from the still-infected US President Donald Trump, while Trump had urged for a cascade of smaller and standalone relief bills including a $25 billion for the heavily beaten aviation industry, late on Tuesday, eventually helping the US money markets open higher on Wednesday.
Trump’s tweets keep spinning Wall St.
Concomitantly, although market participants had been heavily betting on a revival of the pandemic stimulus talks, a number of analysts and equity fund managers had downplayed possibilities of more pandemic relief aid citing a growing grudge among top Democrat and Republican lawmakers, which appeared to have escalated further after Trump had called off the talks on a comprehensive stimulus deal earlier on Tuesday.
Citing statistics, on Wednesday’s Wall Street closing bell, the trade-sensitive Dow surged 1.91 per cent to 28,303.46 and the benchmark Standard & Poor 500 climbed 1.74 per cent to 3,419.45, while the tech-heavy Nasdaq jumped 1.88 per cent to wind down the day at 11,364.60.
Meanwhile, referring to a full-fledged market optimism over a partial pandemic relief bill in a near-future, a managing director of equity trading in Wedbush Securities in Los Angeles, Michael James said on the day’s Wall St.
round off, “The only reason we were down yesterday was the tweet from President Trump, which he walked back last night. That’s why the market started off stronger and continued stronger. I think there’s full-blown expectations that some form of stimulus agreement is going to occur sooner than later”.