New York (AFP)

The New York Stock Exchange took the S&P 500 to a level never before seen on Tuesday, completely erasing the losses suffered by the index as the pandemic began to spread in the United States.

The broad index, which represents the 500 largest companies listed on Wall Street, appreciated 0.23% to end at 3,389.78 points, above the previous record dating from February 19.

The index had yet collapsed by more than 30% between that date and March 23.

The severe restrictive measures imposed by some states in the face of the galloping advance of Covid-19 in certain areas of the United States, in New York in particular, raised fears of a plunge in economic activity and corporate profits and a surge unemployment.

But since then the government has stepped up to the plate with its vast plan to support households, businesses and local communities, which has helped limit the damage.

At the same time, the American central bank (Fed) has injected trillions of dollars into the markets to ensure their proper functioning and to guarantee companies a reliable source of financing.

The S&P 500, like other indices, quickly regained lost ground.

The Nasdaq returned in June to its level before the health crisis.

With a strong technological coloring, it took advantage, in full confinement, of the increased activity of companies specializing in online commerce, IT, internet entertainment, etc.

On Tuesday, the index appreciated further 0.73% to 11,210.84 points thanks to the rise in shares of groups like Amazon (+ 4.1%), Alphabet, the parent company of Google (+2 , 7%), or Netflix (+ 2.0%).

The Dow Jones for its part, where so-called cyclical stocks are more present, which depend more on economic activity, has not yet regained its pre-pandemic record.

The flagship Wall Street index fell 0.24% on Tuesday to 27,778.07 points.

The indicator of the day was however rather positive, housing starts in the United States having jumped 23% in July compared to June.

Another optimistic sign on the financial health of American households: thanks to consumers with purchasing power supported by government aid and who, stuck at home, bought more food, entertainment products and embarked on housework, supermarket giant Walmart and home improvement and DIY retailer The Home Depot reported better-than-expected quarterly results.

However, analysts at Charles Schab also note, "the headlines in the United States remain dominated by high tensions between the United States and China, the inability of parliamentarians to agree on a new support plan to the economy and fears related to Covid-19 ".

© 2020 AFP