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Tech Boost Wall Street; S&P 500 and Dow Jones close at their best in nearly 6 months

Finance News

Equity markets in the United States received a boost from technology broadcasters this Wednesday, after they were punished on Tuesday, in an environment where markets remain optimistic with the arrival of a possible fiscal stimulus package in the United States, as well as the evolution of various vaccines against coronavirus.

At the close, the Dow Jones industrial average advanced 1.05 percent, to 27,976 points, its highest level in almost six months; the S&P 500 index gained 1.40 percent to 3,380 units, its highest level in about six months; and the Nasdaq rose 2.13 percent to 11,012 points, its biggest advance in more than three weeks.

Shareholder sentiment also picked up early after President Donald Trump said Tuesday night that the US government will buy 100 million doses of Moderna’s experimental coronavirus vaccine, which is currently in trials. in humans in advanced stage.

Shares of the American biotech company focused on drug discovery, Moderna, soared 5.61 percent at the start of the session on Wednesday, although they ended operations with gains of less than 1 percent.

“Some legislators have commented that the negotiations on the new stimulus plan in the US are stalled, despite the statements of the Secretary of the Treasury, Steven Mnuchin, earlier this week, who assured that the White House is willing to continue with the discussions on the matter, “commented analysts of Go for more.

In economic data, in the US, inflation in July was at an annual rate of 1 percent, after reaching 0.6 percent in June. In its monthly comparison, the price index increased 0.6 percent, above market expectations of 0.3 percent.

On the energy front, the main mixes saw large gains on the better expectation for supply and demand fundamentals, caused by the publication of the weekly report of the Energy Information Administration (EIA, for its acronym in English).

WTI rose 2.31 percent to $ 42.57 a barrel. Meanwhile, Brent advanced 2.38 percent to 42.60 dollars a barrel.

In the report, it was observed that during the week ending August 7, crude oil inventories in the United States showed a contraction of 4.51 million barrels (m bbl), bringing total commercial inventories to a level of 514.1 m bbl . This is the third week in a row that commercial inventories are down. Likewise, US crude oil production fell by 300 thousand barrels a day to 10.7 million barrels a day (mbd).