The reporter reported that The Dow jumped more than 500 points today after a heavy crash yesterday. The market was boosted by better-than-expected US jobless numbers last week. It was even revealed that the US economy contracted 3.5% in 2020, the worst contraction since 1946.
At 11.10 PM, the Dow Jones Industrial Average was 30,732.05, a positive 549 point or 1.81%.
The US Department of Labor said the number of first-time jobless benefits fell 67,000 to 847,000 last week. It was lower than analysts had forecast of 875,000 from the 914,000 reported the previous week.
As of yesterday, the Dow plunged more than 600 points last night. The record sank the most in a single day in three months as investors were disappointed that the US Federal Reserve did not announce new measures to stimulate the economy. The Fed is concerned about the impact of the COVID-19 epidemic.
The CBOE Volatility Index, or CBOE Volatility Index (VIX), a measure of market investor anxiety, jumped 62 percent yesterday, its biggest soar in two years to 37.32, the highest level since the month. Oct 2020
The VIX index used to hit 82.69, a record high. During the time investors flock to sell their stocks In the midst of the severe COVID-19 outbreak last year.
The Commerce Department released its No. 1 estimate of gross domestic product (GDP) for the fourth quarter of 2020, indicating that the US economy expanded 4.0 percent quarterly. The US economy contracted 2.5% in 4Q20 and the US economy contracted 3.5% in 2020.
The US economy expanded 33.4% in 3Q20, a record high since the US began collecting data in 1947, or more than 70 years after a 31.4% contraction in the second quarter, a sharp contraction. It recorded a record 5% contraction in Q1, pushing the US economy into recession. Due to the contraction for 2 consecutive quarters
The U.S. had the highest previous expansion of 16.7%, hitting the first quarter of 1950.
The US economy in 4Q2020 was driven by an increase in exports. And consumer spending Although public spending declined
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