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15.10.2020 10:01 AM
Pessimism or legitimate concerns? US exchanges closed negatively in anticipation of the economic stimulus package

Stock indexes in the United States closed lower on Wednesday evening. The negative dynamics in the markets has been observed for the second day and no one is denying the reason for the pessimistic mood — investors are anxiously waiting for information about the new package of support for the economy.

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Note that the representatives of the White House and Democrats in Congress are still negotiating the possibility of applying a new economic stimulus package in the run-up to the election. Congress has already provided more than $3 trillion for this purpose, but the previous support package has already expired in August. All negotiations between the parties that took place after that did not yield any results. The pressing issue was last discussed on Wednesday, October 14, but Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi once again failed to arrive at a settlement.

The lack of agreement between the parties immediately caused instability in world markets. So, the US stock market ended Wednesday with an obvious fall: the S&P 500 index lost 0.66% and reached the value of 3488.60 points, the Dow Jones Industrial Average fell 0.58% and reported 28513.98 points, and the NASDAQ index decreased by 0.80% and reached the level of 11768.73.

Among the components of the Dow Jones index, Dow Inc. shares showed strong growth - they increased in price by 0.95p (1.98%) and closed at 48.83. Honeywell International Inc. also rose, increasing by 1.92p. (1.12%) and stopping at 173.47. 3M Company securities increased in value by 1.77p. (1.06%) and reported 168.40.

UnitedHealth Group Incorporated shares, on the contrary, topped the list of declines. Their price decreased by 9.57p. (2.89%) and closed the session with the indicator 321.85. Salesforce.com Inc. increased by 5.00p. (1.87%), stopping at 261.83. Walt Disney Company decreased in value by 2.37 p (1.84%) and closed trading at 126.59.

On the New York Stock Exchange, the number of securities that lost in value exceeded the number that ended trading in the black. Their ratio looks like this: 1857 and 1235, respectively. The quotes of 86 shares remained unchanged. On the NASDAQ stock exchange, 1,943 companies lost in value, 926 won, and 87 indicators did not change in any way.

The closing of the Forex market was marked by an increase in the EUR/USD pair by 0.03% (to 1.1749), while the USD/JPY quotes decreased by 0.00% and reached 105.14.

Irina Maksimova,
Pakar analisis InstaForex
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