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Stocks rise as investors weigh further central bank support

U.S. stocks rose Thursday as the Federal Reserve, the Bank of England and the European Central Bank each rolled out fresh measures to support financial markets as the coronavirus pandemic escalates. 

The Dow Jones industrial average climbed 300 points, a day after it tumbled more than 1,300 points, nearly erasing all of its gains since President Donald Trump took office. The blue-chip average closed below 20,000 Wednesday for the first time since Feb. 2, 2017. On Thursday, the Standard & Poor’s 500 rose 2%. 

Prices for longer-term U.S. Treasurys, which are seen as some of the safest possible investments, fell as investors sold what they could to raise cash. That pushed the yield on the 10-year Treasury, which moves in the opposite direction of prices, sharply higher, to 1.19%. It had recently dropped below 1% for the first time ever. 

The Federal Reserve on Thursday expanded the currency swaps it announced Sunday with major central banks such as Europe and England. The expansion includes central banks in Australia, Brazil, Denmark, South Korea, Singapore Norway, Sweden and New Zealand.

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