U.S. stocks spurred by interest rate cuts

world economy

Written by: Zhang Zijie

2020-03-05 05:01

U.S. stocks rebounded on the 4th after experiencing a downturn on March 3. The US and Canada ’s central banks announced interest rate cuts. In addition, the US Democratic Party ’s presidential candidate situation is close to clear. The paragraph rose over a thousand points.

U.S. stocks rebounded sharply on the 4th after falling on March 3. (Reuters)

The Dow closed at 27089.67 points, up 1172.26 points, or 4.52%.

The Nasdaq closed at 9018.09 points, up 334 points, or 3.85%.

The S & P 500 index was 3130.09 points, up 126.72 points, or 4.22%.

Reuters quoted analysts on the 5th, saying that the rally in U.S. stocks today is the result of investors' relief that Joe Biden has returned to the election campaign. Biden has won at least 9 of the 14 states and territories, including Texas with 228 party votes. Bernie Sanders' advocate for "Medicare for All" will replace private health insurance, and now he is not performing as well as expected in the election campaign, which has supported medical insurance stocks.

The U.S. Federal Reserve announced a sudden interest rate cut on March 3, and the Bank of Canada followed suit the next day, which will increase investors' expectations for more central banks to adopt monetary easing policies. There are voices that the next bank will be the Bank of England, which has a good chance of cutting interest rates by 0.5% in March, but a central bank spokesman declined to comment.

Andrew Bailey, chief executive of the British Monetary Authority (FCA), who will be the governor of the Bank of England on March 16, has called on the government to support smaller businesses with emergency financial assistance. He said he had talked with British Treasury Secretary Rishi Sunak about coordinating the response between the Bank of England and the Treasury. "It is clear that in such cases we must take concerted action," Bailey said.

In terms of European stocks, the British FTSE 100 index closed at 6802.71 points, up 84.51 points or 1.26%; the German DAX index closed at 12094.42 points, up 109.03 points or 0.91%; the French CAC 40 index closed at 5486.89 points, up 71.72 points or 1.33%; Italy The FTSE MIB index closed at 21946.03 points, up 197.83 points or 0.91%.

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