On Tuesday, the New York Stock Exchange advanced as the U.S. Congress is moving to pass a new package to help the economy before Christmas. Also the coronavirus epidemic has just passed the 300,000-death mark in the United States, and New York City plans to shutdown. Investors are also awaiting a decision from the Fed, which on Tuesday started a two-day meeting. As expected, on Monday, the Electoral College confirmed Joe Biden’s election as the 46th President of the United States, who will take office on 20 January.
The Dow Jones index gained 1.13 percent to 30,199 points at the close, while the large S&P 500 index recovered 1.29 percent to 3,694 points and the Nasdaq Composite Index, which is rich in technology and biotech stocks, rose 1.25 percent to 12,595 points.
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Traders are eagerly awaiting Wednesday’s Fed verdict in the face of the worsening health situation. Until the economic recovery meets those requirements, the U.S. central bank could announce an extension of its asset buying programs (“QE”).
Even if this is not the most possible assumption, it is also not out of the question for the bank to increase the amount of its programs. The Fed would also have to take account of the federal government’s budgetary support, the next move which is slow to materialize.
On Tuesday, Nancy Pelosi met with congressional leaders to discuss the specifics of these measures, as well as the 2021 finance bill that must be passed by Friday to keep any federal agencies from shutting down.
Senate Republican Majority Leader Mitch McConnell (whose support is needed) was present alongside Senate Democratic Minority Leader Chuck Schumer and House of Representatives Republican Minority Leader Kevin McCarthy, according to CBS News.
Treasury Secretary Steven Mnuchin, with whom Pelosi has been negotiating for months, was also expected to attend the meeting by telephone, with markets eventually hoping to make tangible steps towards an aid package.
On Tuesday, a day after Electoral College representatives voted to recognize the win of the Democratic couple, Mitch McConnell recognized Joe Biden’s victory for the first time, congratulating the incoming President-elect and Vice President Kamala Harris.