New York Stock Exchanges Started Trading on Wednesday with Gains
New York stock exchanges started trading on Wednesday with gains. Investors once again respond to a massive flow of business results.
The contraction of the US economy in the first quarter of this year is also included.
The Dow-Jones index was 1.6 percent higher at 24,476 points shortly after the opening bell. The broad-based S&P 500 gained 1.7 percent to 2,913 points, and tech exchange Nasdaq gained 1.8 percent to 8,668 points.
The US government announced that the corona crisis clearly burdens the economy. In the first quarter of this year, the economy contracted by 4.8 percent. That is considerably more than the average economists had anticipated.
But this figure may indicate that the Federal Reserve is coming up with additional support measures. Investors are therefore very much looking forward to the interest rate decision of the US Federal Reserve (Fed), which will be released later today.
Google mother Alphabet opened the books and gained almost 9 percent in market value in the first trading minutes. The company grew mainly with its search engine, video website YouTube and the cloud services. However, growth took a hit in March when advertising revenues fell sharply.
On the numerical front, attention was also focused on Boeing, which won almost 4 percent. The aircraft maker is faced with significant headwind due to the corona crisis.
For example, the demand for aircraft and services is less, as airlines worldwide keep their planes on the ground. To save costs, Boeing wants to say goodbye to approximately 10 percent of its workforce.
Industrial conglomerate General Electric (GE) is also severely affected by the avalanche slump. Due to the crisis, the number of orders for aircraft engines from GE is decreasing, among other things. That depressed the company’s turnover. The share dropped about 1 percent.
Gilead Sciences also went up about 4 percent. The American pharmaceutical company reported promising results in the study of a potential corona drug.
