Despite the increase in coronavirus cases in the U.S. and prolonged lockdowns in Europe, especially in France, the New York Stock Exchange rose again on Friday. Investors appear to be hopeful about the production of a vaccine that will speed up the economic recovery in 2021. They also welcomed the better-than-expected Cisco Systems Inc (NASDAQ: CSCO) (up 7 percent) and The Walt Disney Company (NYSE: DIS) (up 1.9 percent) results on Friday. On Thursday, however, policy makers from the Fed and ECB warned of lingering short-term uncertainties. Jerome Powell also felt for the U.S. economy that the next few months could be tough.
The Dow Jones industrial average advanced 1.37 percent to 29,479 points and is heading for a turnaround of 10 percent in two weeks, reaching its last all-time peak in February (29,551 points). The S&P 500’s large index rose 1.36% to 3,585 points and the Nasdaq Composite, which is rich in technology and biotech stocks, recovered 1.02% to 11,829 points. If the DJIA is up over the week, it is anticipated that the other two indices will decline over 5 sessions, driven by technology and internet values correction.
Both the Fed and ECB leaders were cautious on Thursday. Jerome Powell and Christine Lagarde welcomed the imminent introduction of a coronavirus vaccine at the ECB’s “Central Banks in a Changing Environment” forum while voicing concern about the short-term economic outlook. “We now see the other side diving into a river of confusion,” the ECB boss judged, reflecting on Pfizer and BioNTech’s announcements on Monday on the 90 percent efficacy of their vaccine candidate. “But because of the ambiguity that remains “about the development and delivery of the potential vaccine, I do not want to be exuberant about vaccination.” Lagarde added.
The President of the U.S. Federal Reserve, Jerome Powell echoed him, saying that in the medium term, vaccine announcements are “positive and welcome news,” but that it is still too early to decide with certainty the consequences for economic developments, especially in the short term,” he added. “It could be difficult for the next few months,” the Fed boss continued.