US indexes closed with growth amid weakening of banking regulation
As of 04.02 SGT time, the Dow Jones Industrial Average (DJIA) index has grown by 1.17%, to 25744.71 points, the S&P 500 broad market index by 1.09%, to 3083.67 points, and the NASDAQ high-tech companies index by 1.09%, to 10017 points.
At the beginning of the trading session, the indices were moderately decreasing. Traders' mood was affected by the data of the U.S. Labor Ministry that the number of primary applications for unemployment benefits in the country for the week ending June 20 decreased to 1.48 million with a forecast of 1.3 million. In addition, the U.S. Ministry of Labor confirmed the estimate of the country's GDP decline by 5% in the first quarter amid the growth of 2.1% in the fourth quarter last year. This decline was the first since 2014 and the strongest since 2008.
Fears of a "second wave" of coronavirus infections in the world also remain on the market, which may constrain the recovery of the economy and become an occasion for a new strengthening of quarantine measures. According to the latest WHO data, more than 9.1 million cases have already been detected worldwide, with a record number of cases per day in five US states.
However, after the U.S. Securities and Exchange Commission announced that five federal agencies had finalized the so-called Volcker rule, the market returned to growth.
This rule limited the participation of U.S. banks in buying and selling of securities with their own funds. Now the rule allows such purchases, if they do not cause the regulator's concerns about the banks' stability and that they will be able to meet their obligations to clients.