China News Service Client, Beijing, April 30 (Xie Yiguan), April 29 (Wednesday), local time, the "positive data" of Phase III trial of Red West, which diluted the negative impact of US GDP data in the first quarter, released by the Federal Reserve Continuing to loosen signals, US stocks opened higher and higher, and the Nasdaq once erased all the cumulative declines this year.
The Dow trended throughout the day.
Red West has made positive progress, US stocks closed up sharply
Before the US stock market, the US first quarter GDP data was released. According to data from the US Department of Commerce, the annualized initial value of real GDP in the first quarter of the United States shrank by 4.8% from the previous quarter, the first decline since the first quarter of 2014, and the largest decline since the fourth quarter of 2008 during the financial crisis.
Affected by GDP data in the first quarter, the US stock index fell briefly. Then Gilead Sciences announced that the clinical trials of redoxive for the treatment of new coronary pneumonia have reached the main evaluation indicators, which offset the negative effects of poor economic data.
US stocks opened sharply higher, the three major intraday stock indexes fluctuated higher, and some of the gains were taken in late trading. As of the close on the 29th, the Dow rose 532.31 points, up 2.21% to 24633.86 points; the Nasdaq rose 306.98 points, up 3.57% to 8914.71 points; the S & P 500 index rose 76.12 points, up 2.66% to 2939.51 points.
It is worth noting that S & P has accumulated more than 13% this month, and is expected to record the largest monthly increase since 1974. The Dow has accumulated 12.4% so far this month, or the largest monthly increase since 1987.
Large technology stocks and popular Chinese stocks closed up collectively, Google rose 8.89%, Facebook rose 6.17%, and Gilead Science also rose 5.68%. Boosted by soaring oil prices, US energy stocks rose sharply, Exxon Mobil rose 4.06%, Chevron rose 3.82%, ConocoPhillips rose 5.59%, Schlumberger rose 6.66%, Western oil rose nearly 8%.
The US Energy Information Administration (EIA) report shows that as of the week of April 24, US crude oil inventories increased by 89.91 million barrels, with an expected increase of 10.619 million barrels, and the previous value increased by 15.022 million barrels. US crude oil inventories fell short of expectations, and international oil prices rose collectively on Wednesday. NYMEX crude oil futures closed up 8.92% at $ 19.17 per barrel, and Brent crude oil futures rose 6.51% to $ 24.22 per barrel.
However, Edward Moya, a senior market analyst at foreign exchange broker Oanda, said the market ’s optimism that Redsilver will receive fast-track approval is increasing, but traders need to be cautious because of this drug It has not been proven to be safe or effective in the treatment of new coronavirus.
The Fed announced to keep interest rates unchanged
Following the cumulative rate cut of 150 basis points in March, the Fed temporarily “fired”. In the early morning of 30th Beijing time, after the two-day interest rate meeting ended, the Fed announced that it would maintain the federal funds rate target range at an ultra-low level of zero to 0.25% and continue to release easing signals.
The Fed said that the current public health crisis will have a significant impact on US economic activity, employment, and inflation in the short term, and will bring considerable risks to medium- and long-term economic growth expectations. This decision will continue until the economy recovers from the current situation, and employment and price stability are restored to the target level. Will continue to pay attention to the latest public health and economic data, and will take action to escort the economy.
"The Fed statement does not have much new content. The Fed has lowered interest rates to a low level and announced a series of emergency lending plans and convenience tools. The current Fed's attention is turning to making these liquidity measures operational." TD Securities responded to this Pointed out.
"In addition, there are no new economic expectations in the statement, but the Fed is clearly aware of the unprecedented impact on the economy. The epidemic has a negative impact on inflation and employment and a long-term threat to the economic outlook." TD Securities said The Fed also mentioned the damaged financial environment, which means that its financial interventions will continue for some time.
"There is no doubt that the Fed is more proactive than it was in 2008, and they hope to inject capital into the market, which also supports the valuation of stocks." Some market analysts believe that.
On April 28 local time, satellite images provided by Maxar Technologies showed that during the New Coronary Pneumonia epidemic, the streets of New York City in the United States were empty. The picture shows the empty street in front of the No. 1 building of the World Trade Center.
US GDP is expected to be worse in the second quarter
Facing the decline of the US economy in the first quarter, the US Department of Commerce stated that part of the reason was the rapid changes in demand caused by the epidemic. However, the data released on the 29th still failed to fully reflect the full impact of the epidemic on the US economy. Many voices believe that the impact of the epidemic on the US economy will become more apparent in the second quarter.
Fed Chairman Powell said at a news conference that the current economic expectations are facing extraordinary uncertainty, and economic activity in the second quarter will decline at an unprecedented rate. "Even if the US economy rebounds, it will not be able to return to the level before the outbreak."
"The annualized quarterly rate of GDP in the first quarter of the United States fell for the first time in six years, but this may only be the tip of the iceberg. The GDP growth rate in the second quarter may fall by about 40%." Ratner, a former US Treasury adviser, pointed out.
Goldman Sachs Group economist Spencer Hill believes that there is a big gap between economic data and reality, and the gap is constantly expanding, which reflects that the US economy has begun to decline. "The US economic situation in the second quarter may be worse."
Goldman Sachs predicts that the US GDP will fall by 34% in the second quarter, setting the "most miserable quarter" since it was recorded in 1947. (Finish)