The New York stock Exchange has closed sharply higher Wednesday, is resuming after a difficult start to the week and showing himself to be reassured by the strong rebound in oil prices.
The index feature of Wall Street, the Dow Jones Industrial Average, climbed 1.99 %, to 23 475,82 points.
The Nasdaq, in high coloring technology, has taken on 2,29 %, 8 495,38 points, and the S&P 500, which represents 500 largest companies of Wall Street, has won 2,81 %, to 2 799,31 points.
Wall Street had suffered during the previous two sessions, leaded by the historic collapse of oil prices, the contract reference on the barrel of crude WTI, quoted in New York, even having closed in negative on Monday.
The revival in prices of the black gold (+19 % for WTI, +5.4% for the Brent in london) has relieved the place in new york on Wednesday.
According to Maris Ogg of Tower Bridge Advisors, actors in the market ” have started to think about the long-term implications of an oil price as low. ”
“They realize that even if it is going to take a long time for the level of reserves decline, the current prices are not sustainable in a longer time horizon,” adds Mrs Ogg.
With the outbreak of coronavirus, the world’s consumption of oil has collapsed and the stocks are filled, approaching saturation in several countries.
In addition, the quarterly results of the listed companies on the S&P 500 continued.
Netflix announced on Tuesday evening, having attracted nearly 16 million new paying subscribers, a rise due in large part to the containment measures around the world to limit the spread of the coronavirus.
The giant of the streaming is shown, however, cautious in describing this acceleration to ” temporary “. Its share declined 2.9 % on Wall Street.
Usually scrutinized by investors, “the results have lost their relevance,” says Mrs Ogg, given the new context that crosses the u.s. economy.
“What is more important is what businesses have to say about their prospects, but the reality is that it remains unclear “, she says.
On the bond market, the rate on 10-year u.s. Treasury bills was $ 0,612 7 %, increase compared to the closing of the previous day.