US stocks close: focus on Fed minutes and epidemic development Dow closed up 369 points

Original title: US stocks close: Focus on Fed minutes and epidemic development Dow closed up 369 points
In the early morning of the 21st, Beijing time, US stocks closed higher on Wednesday. The minutes of the Fed ’s April meeting stated that it would be committed to using all tools to support the economy. All 50 US states have restarted. The WHO said the daily increase in newly diagnosed coronavirus diseases was a record.
The Dow rose 369.04 points, or 1.52%, to 24575.90 points; the Nasdaq rose 190.67 points, or 2.08%, to 9357.78 points; the S & P 500 index rose 48.67 points, or 1.67%, to 2971.61 points.
Recent progress and setbacks in vaccine research and development have led to market turmoil, and optimism and pessimism about the economic restart are also affecting the market. Jim Paulsen, chief investment strategist at Leuthold Group, said: “In addition to liquidity injection and fiscal stimulus, the summer virus may be weak and a comprehensive vaccine trial may support the stock market.
Minutes of the Fed meeting: committed to using all tools to support the economy, worried about the recurrence of the epidemic
At 2 p.m. EDT on Wednesday, the Fed announced the minutes of the April meeting. The minutes reiterate the position of maintaining interest rates near zero, saying that the economic impact of the new crown epidemic has brought “tremendous uncertainty and considerable risks to economic activity in the medium term”. The members agreed that the Fed is committed to using all tools to support the economy.
The Federal Open Market Committee (FOMC) released the minutes of the meeting on April 29. During the April meeting, the Fed maintained the benchmark interest rate at a near zero level of 0% to 0.25%.
The minutes of the meeting stated that the committee members agreed that the new crown virus exerted severe pressure on recent economic activities, employment and inflation. The commissioners are expected to maintain the current interest rate target range until they are confident that the economy has withstood the impact of recent events and is on track to achieve the Fed’s goals.
The minutes said: “Participants commented that in addition to severely affecting economic activities in the short term, the economic impact of the New Crown Pandemic also brought great uncertainty and considerable risks to mid-term economic activities.”
Members believe that if the economic downturn continues, more financial support may be needed.
The minutes of the meeting showed that financial conditions have improved significantly in recent weeks. The FOMC may clarify its intentions regarding interest rate policy later. Some Fed officials believe that the clarity of forward guidance can be improved. The Fed considers providing forward-looking guidance based on results or based on dates.
The Fed also mentioned in the minutes of the meeting that a particular point of concern is the risk of a second outbreak of the new crown epidemic later this year. The minutes of the meeting pointed out that the “more pessimistic” outlook on the rebound of the epidemic may be consistent with the baseline improvement.
“In this case, the second round of the New Crown Outbreak and another round of strict restrictions on social activities and business operations are assumed to start around the end of the year, resulting in a decline in real GDP next year, an increase in unemployment, and inflation again facing downward pressure . ”
Participants emphasized that measures taken in the areas of health and fiscal policy, as well as private sector actions, are very important in shaping the timing and speed of the return of the US economy to a more normal state.
The minutes show that some members believe that, in a more ideal situation, if the epidemic subsides enough to allow families and businesses to have enough confidence to relax or adjust social distance behavior within a few months, economic activity will recover faster.
Data shows the epidemic has a profound impact on the US economy
Although the health crisis in certain parts of the United States seems to have been alleviated by some standards, the epidemic crisis and the social isolation measures taken to control the epidemic still caused economic difficulties. On Tuesday morning, the US government reported that the start of new home construction and construction permits in the United States dropped to their lowest level since 2015, indicating that the coronavirus pandemic has had a profound impact on activities in almost all economic sectors.
A new study released by the American Human Resources Management Association and Oxford Economic Research on Tuesday showed that affected by the new coronary pneumonia epidemic, American workers have lost a total of $ 1.3 trillion in income so far, with an average of nearly $ 8,900 per person. About 20% of the loss, or $ 260 billion, is the loss of workers who still have jobs. These workers either accepted wage cuts or their working hours were cut. According to the U.S. well-known think tank Urban Research Institute (Urban I