American stock indices are rising during trading on Tuesday after falling the day before. The US stock market closed in the red on Monday amid a new wave of risk aversion in global markets. The Dow Jones Index dropped 1.84%, the Nasdaq – 0.13%. The Standard & Poor's 500 lost 1.16%, ending its fourth straight session in the red, the first such string of declines since February.
Economic measures in response to the coronavirus situation have mitigated the negative impact of the pandemic-induced recession, but the US Congress may have to provide additional funding to support sectors of the economy that are still struggling, says Federal Reserve Chairman Jerome Powell. …
Powell is expected to speak on Tuesday before the Financial Services Committee of the US House of Representatives. Meanwhile, investor concern about the spread of the coronavirus is growing in connection with the intention of the UK authorities to introduce new quarantine measures.
In addition, the prospects for a new economic stimulus package in the United States have become even more distant amid controversy over the appointment of a Supreme Court Justice to replace Ruth Bader Ginsburg, who died on September 19, writes CNBC. US President Donald Trump wants to approve a new judge before the presidential election.
The Congressional Budget Office (CBO) has released new forecasts that average annual GDP growth of 1.6% between 2020 and 2050, down about a quarter percentage point from June 2019 when previous long-term economic forecasts were published. From 1990 to 2019, the economy grew at an average of 2.5%.
On Tuesday, traders are also awaiting the release of the US National Association of Realtors data on existing home sales in August.
The Dow Jones Industrial Average rose by 77.42 points (0.29%) by 16:38 Moscow time – up to 27,225.12 points.
Standard & Poor's 500 added 16.63 points (0.51%) to 3297.69 points.
The Nasdaq Composite rose 46.78 points (0.43%) to 10825.58 points.
Amazon.com Inc (NASDAQ: AMZN) Shares. rose 2% after Bernstein raised its recommendation for the stock to buy from hold.
Carvana Co. jumped in price by 20.5%. Online used car dealer predicts record revenues and gross margins per unit for the third quarter. The company also plans to issue $ 1 billion in bonds.
Tesla Inc. Quotes fell 4.3% on expectations of the presentation of the company's new battery technology Battery Day. Tesla CEO Elon Musk said on Twitter that mass production of new products, which will be presented on Tuesday, will not begin until 2022.