Wall Street rises on Fed's $2.3 trillion rescue plan
By Uday Sampath Kumar and Shreyashi Sanyal (Reuters) - Wall Street rose for the third time in four days on Thursday as the U.S. Federal Reserve rolled out a massive $2.3 trillion program to bolster local governments and businesses hammered by the coronavirus outbreak
By Uday Sampath Kumar and Shreyashi Sanyal
(Reuters) - Wall Street rose for the third time in four days on Thursday as the U.S. Federal Reserve rolled out a massive $2.3 trillion program to bolster local governments and businesses hammered by the coronavirus outbreak.
In what is likely to be its largest rescue effort ever, the Fed said it would work with banks to offer 4-year loans to companies of up to 10,000 employees and directly buy bonds of states and more populous counties and cities.
"(The Fed's move) should give some confidence to investors, that the risks this time around are maybe not the same as the risks in the financial crisis," said Randy Watts, chief investment officer at O'Neil Global Advisors.
"While this rally has been impressive, the market probably is a little bit of ahead of itself and we would not be surprised to see a pullback from here."
The financial index <.SPSY> rose 6.09%, providing the biggest boost to the S&P 500 <.SPX> as banks rose sharply on the Fed's backstop. J.P. Morgan
The defensive real estate <.SPLRCR> and utilities <.SPLRCU> sectors also jumped more than 5%.
The S&P 500 has gained near 13% in the holiday-shortened week on early signs of the outbreak hitting a peak and aggressive global stimulus, but it remains about 17% below its record high as lockdown measures hamper business activity.
If gains hold through the day, the benchmark index would have logged its best week since October 1974.
While public health experts stressed the need to keep people apart to contain the contagion, the restrictions have strangled the economy and sparked widespread production cuts, layoffs and projections of a severe recession.
"This week brought early signs that the restrictions put in place over recent weeks are flattening the epidemic curve in the U.S.," said Michael Pearce, senior U.S. economist at Capital Economics.
"But set against that good news, there are clearer signs that the hit to employment has been harder than initially anticipated."
A staggering 16.8 million Americans have filed for unemployment benefits in the last three weeks, with weekly new claims topping 6 million for the second straight time last week.
At 1:09 p.m. ET the Dow Jones Industrial Average <.DJI> was up 523.97 points, or 2.24%, at 23,957.54, the S&P 500 <.SPX> was up 62.48 points, or 2.27%, at 2,812.46 and the Nasdaq Composite <.IXIC> was up 104.19 points, or 1.29%, at 8,195.09.
Walt Disney Co
Advancing issues outnumbered decliners for a 11.27-to-1 ratio on the NYSE AND a 4.48-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and no new low, while the Nasdaq recorded 14 new highs and eight new lows.
(Reporting by Uday Sampath and Shreyashi Sanyal in Bengaluru; Editing by Sagarika Jaisinghani, Arun Koyyur and Shounak Dasgupta)
This story has not been edited by Firstpost staff and is generated by auto-feed.
ATHENS (Reuters) - Greek police used teargas and water cannon to disperse people who had gathered in central Athens on Saturday to protest against mandatory COVID-19 vaccinations. More than 4,000 people rallied outside the Greek parliament for a third time this month to oppose mandatory inoculations for some workers, such as healthcare and nursing staff.
ISTANBUL (Reuters) - Two Turkish soldiers were killed and two were wounded in an attack on their armoured vehicle in northern Syria, and Turkish forces immediately launched retaliatory fire, Turkey's defence ministry said on Saturday. "Our punitive fire against terrorist positions is continuing," the statement on Twitter on said. It did not specify where the attack occurred, but media reports said it was in the al-Bab area.
By Marcelo Rochabrun SAO PAULO (Reuters) - Protesters took to the streets in several Brazilian cities on Saturday to demand the impeachment of far-right President Jair Bolsonaro, whose popularity has fallen in recent weeks amid corruption scandals against the backdrop of the pandemic. This week, news broke that Brazil's defense ministry told congressional leadership that next year's elections would not take place without amending the country's electronic voting system to include a paper trail of each vote. Bolsonaro has suggested several times without evidence that the current system is prone to fraud, allegations that Brazil's government has denied