New York’s three major stock indexes set new records on Thursday. It increased investors’ optimism about the long-awaited and discussed fiscal momentum, whose approval has stalled in the US Congress.
The Dow Jones Industrial Average added nearly half a percent on Thursday, reaching 30,300. The main S&P 500 rose slightly higher, rising to more than 3,700 points. The technology index was only 16-hundredths of a percentage point down to solidify by a full percent point from the previous day. Even so, it managed to finish on almost 12,800 points.
The common denominator of this development is progress in negotiations between Republicans and Democrats on a fiscal package that should support the US economy hit by the coronavirus crisis. This is especially in light of the unexpected increase in the number of new applications for unemployment benefits.
Thus, budgetary policy could contribute to monetary policy expansion, which was extended by the US central bank this week. The Federal Reserve has decided to continue buying bonds until full employment is restored in the US.