US stock markets rose on crisis package hopes from Mnuchin – but no agreement was reached

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The US stock markets on Wall Street rose by almost two percent on Wednesday night, after the US Treasury Secretary Steven Mnuchin stated that he believes the authorities must make a proper attempt to establish a new support scheme for corona victims.

“I say we will give it a new, serious attempt to get this done,” Mnuchin told a news conference on Wednesday, according to CNBC.

– I think there is a reasonable compromise.

After a 90-minute meeting between Mnuchin and the leader of the House of Representatives, Nancy Pelosi, however, the parties have not yet been able to reach an agreement on Wednesday night. It did not like the markets, which fell immediately after the announcement.

Closing courses

The rise was dampened for the indices after the announcement that the parties did not reach an agreement, where the S&P 500 fell from a rise of 1.5 per cent to 0.2 per cent. In the last half hour before closing time, however, the indices recovered somewhat.

Wall Street closes Wednesday night:

  • The broad S&P 500 index closes with an increase of 0.8 percent.
  • Industrial-heavy Dow Jones closes with an increase of 1.2 percent.
  • The technology index Nasdaq Composite closes with an increase of 0.7 percent.

It was the stocks that have been hardest hit by the corona crisis, including planes, banks and cruise stocks, that rose the most on Mnuchin’s statements earlier in the evening.

Macro numbers at the top

In addition, the markets were affected by various macro figures, of which US housing figures and quarterly figures for US gross domestic product.

“Pending home sales” in the United States ended up 8.8 percent on a monthly basis in August 2020.

An increase of 3.4 percent on a monthly basis was expected in advance, according to Direkt Makro, writes TDN Direkt on Wednesday.

Pending home sales are home sales where contracts have been signed, but where the sale has not been finalized, and are considered a leading indicator of the turnover of used homes.

In addition, figures for US GDP for the second quarter emerged, where it was reported that gross domestic product fell by an annual rate of 31.4 per cent.

According to TDN Direkt, the US GDP figure has never fallen near so fast before. The previous record is from the second quarter of 1958 when the rate was 10 percent.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For further terms see here.

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