Wall Street trims most of its gains as the rebound from Monday’s crash fades
- Major US equity indexes move away from highs, turned momentarily negative.
- As recovery fades, US yields move off highs.
- DXY rises further, yen recovers and crude oils consolidates a 6% gain.
After staring sharply in positive, with gains of more than 3.5%, Wall Street's main indexes turned to the downside, trimming most gains. As of writing, the Dow Jones Industrial Average was up just 0.50%, the S&P 500 0.29% and the Nasdaq 0.52%. The rebound after Monday’s crash quickly faded.
It is not clear what kind of fiscal stimulus will the Trump administration deliver. That uncertainty weighs on market sentiment. Recently Vice president Pence said that US insurers agreed to waive all virus tests while Trump spoke about about support to airlines and cruise ships.
The economic response from the White House so far has not been strong enough to contain the negative impact and the seriously damaged investor’s confidence. More announcements are expected soon.
Over the last hours, the greenback rose further as it strengthened across the board, even against it’s mains European rivals, but not versus the yen. The Japanese currency is also trimming losses as US yields move off highs. Oil trades relatively steady, with the WTI posting a gain of around 6%, holding around $33.00.