Friday , December 4 2020

Wall Street on the rise after the surge in US GDP

Wall Street surged on Thursday after the US returned to growth thanks to historic third-quarter GDP spike.

After starting in the red, the Dow Jones Industrial Average rose 0.12% to 26,552.17 points at around 2:05 p.m. GMT.

The high-tech Nasdaq rose 1.09% more openly to 11,124.77 points, and the expanded S&P 500 gained 0.56% to 3,289.22 points.

The major New York indices nevertheless approached their worst week since March.

The New York Stock Exchange on Wednesday accused its biggest decline since June, undermined by the likely economic impact of the second wave of Covid-19 and the new containment measures announced in Europe: the Dow Jones was down 3 43% and the Nasdaq by 3.73%.

US GDP rose 33.1% on an annualized basis between July and September, according to a preliminary estimate by the Department of Commerce released on Thursday.

For Briefing’s Patrick O’Hare, however, this GDP report didn’t come as a real shock to the New York Stock Exchange, as investors had anticipated a sharp spike and continue to expect turmoil in the years to come. Month.

“There is no recovery plan in the United States, there is the uncertainty surrounding the presidential election (American, editor’s note), there is an outbreak of coronavirus contamination cases, and new efforts by authorities to limit its spread through containment or targeted measures Closures “, lists the expert.

“Life is not going to get normal even if a vaccine is approved in January, before the end of next year, or maybe even in 2022,” he continues.

Big tech stocks soared ahead of Alphabet (parent company of Google), Amazon, Apple and Facebook quarterly results released after Wall Street closed on Thursday.

This burst of results “is synonymous for Wall Street with a threat to the power of four, and any of them could have an impact on the market between Thursday night and Friday due to the huge capitalization of these groups,” notes JJ Kinahan of TD Ameritrade.

Moderna rose by 2.34% below today’s values. American biotechnology announced it had received $ 1.1 billion in deposits in the third quarter for its Covid-19 vaccine, which is still in clinical trials but is “actively preparing for it.” “.

The share of semiconductor manufacturer Inphi (+ 23.39%) increased after the announcement of the takeover by rival Marvell Techology (-6.51%).

  1. Nasdaq

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