New York (AFP)

Wall Street was in the red Wednesday at the start of the session after an intervention by the chairman of the Federal Reserve, who gave his outlook on the US economy and the damage caused by the coronavirus.

Around 1:50 p.m. GMT, its flagship index, the Dow Jones Industrial Average, fell by 0.77% to 23,582.18 points.

The Nasdaq, with a strong technological coloring, fell by 0.13% to 8.90.46 points.

The S&P 500, which represents the 500 largest companies on Wall Street, lost 0.59% to 2,853.05 points.

The New York Stock Exchange had finished in the red on Tuesday, accelerating its losses at the end of the session, in a market on guard when the economic activity gradually restarts in the American federated states: the Dow Jones had fallen by 1.89% and the Nasdaq of 2.06%.

Jerome Powell, the head of the American Central Bank, warned in a speech Wednesday that the damage of the pandemic on the first world economy could be "lasting, which justifies in his opinion emergency aid plans" expensive "but essential to avoid a deep recession.

To date, Congress has provided some $ 2.9 trillion in budget support to households, businesses, health care providers, and states and local communities.

In this regard, Powell said additional aid may be needed to respond to the economic shock.

Democrats on Tuesday unveiled to the United States Congress a $ 3 trillion aid package to rescue the U.S. economy. This plan, however, is unlikely to be adopted in the Senate, controlled by the Republicans.

The Fed chief also said that the US economy "should recover to a large extent" once the pandemic is brought under control, even if the recovery may be slower than expected.

In addition, note analysts at Charles Schwab, the market "continues to be hampered by persistent concerns over a possible second wave of the pandemic with information on new cases in Asia and Europe after the reopening of the economy in these regions. "

On the bond market, the 10-year rate on US debt increased slightly, standing at 0.6654% against 0.6651% on Tuesday evening.

© 2020 AFP