New York (AFP)

The New York Stock Exchange saw a sharp rebound on Tuesday, the Dow Jones recording even its strongest growth in one session in almost 90 years, in a market optimistic on the imminent vote of an economic recovery plan in the United States.

Its flagship index, the Dow Jones Industrial Average soared 11.37% to 20,704.91 points. You have to go back to March 15, 1933 to find traces of such a high percentage increase in one session.

The highly technological Nasdaq climbed 8.12% to 7,417.86 points and the S&P 500 index rose 9.38% to 2,447.33 points.

"The market expects a large-scale economic recovery plan to cushion the negative effects caused by the closure of the US economy" in the midst of a coronavirus pandemic, explains Quincy Krosby of Prudential.

After two failures in the Senate, Sunday evening and Monday, Republicans and Democrats continued to negotiate to adopt this text, which could offer up to 2,000 billion dollars in aid.

Democratic Speaker of the House of Representatives Nancy Pelosi said on the CNBC financial news channel that there was "real optimism" that Congress would reach an agreement.

The measures could include tax assistance of up to $ 1,200 per adult and $ 500 per child for households earning less than $ 99,000 per year. Secretary of the Treasury Steven Mnuchin told him about $ 1,000 per adult.

The text also provides for a series of measures for small and medium-sized businesses, including $ 300 billion in loans.

"These measures will not solve everything," warns Ms. Krosby, however.

"They complement many of the programs that the Federal Reserve has put in place. The central idea is to release money as quickly as possible," she said.

Encouraging sign, according to Ms. Krosby, the volatility indicator (VIX) on Wall Street has declined sharply in recent days, which generally announces a rising market at a sustained pace. The VIX has lost more than 20 points since the start of last week.

To prevent Tuesday's rebound from being a flash in the pan, "the market would have to close tomorrow a little higher than expected, however," said the expert.

On the bond market, the 10-year rate of American debt was increasing. It stood at 0.8434% around 8:30 p.m. GMT against 0.7863% the day before closing.

© 2020 AFP