• Bags growing strongly thanks to Wall Street

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March 24, 2020 Wall Street closed sharply, rebounding from the three-year low hit in the previous session. Markets point to the fact that the US Congress will approve the aid plan for companies and families hit hard by the coronavirus pandemic.

For the Dow Jones, with + 11.37%, it was the best session in percentage terms since 1933. For the S&P 500, with + 9.38%, it was the best daily performance since October 2008. The Nasdaq instead marked a + 8.12%. After the confirmations provided by the Secretary of the Treasury, Steven Mnuchin, and by the leader of the Democratic minority in the Senate, Chuck Schumer, it was the turn of the speaker of the House, Nancy Pelosi, who said she was optimistic that the parties will be able to find an agreement in the "next few hours".

Meanwhile, President Donald Trump has urged Congress to approve an agreement by "today" and said he hopes to be able to remove the restrictive measures imposed to limit the spread of coronovirus in the country "by Easter". This is despite the increase in cases from Covid-19. According to John Hopkins, there are over 407,000 cases worldwide while deaths are at least 18,000. In the USA there are 46,500 cases and at least 590 deaths. The rebounds on Wall Street are generalized, indicating that some of them are driven by technical reasons after the heavy sell-offs of the past few days. In fact, they concern in particular some of the companies most severely affected by the pandemic, such as cruises and airlines. Investors continue to make investments deemed safer such as gold and US government bonds. The yellow metal posted its best daily performance since March 2009, adding around 6% to $ 1,660.80 an ounce. While for the 10-year US government bond the yield, which moves inversely at the price, rose above 0.80%. Oil continues to rebound thanks to the measures launched by the Fed, which should facilitate access to credit by companies hard hit by the crisis, such as those in the oil sector. The WTI contract in May gained 2.8% to $ 24.01 a barrel.