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2% sales on Wall Street after Powell's announcement of the extent of the crisis

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Wall street has dropped a 2% on average (Dow Jones: -2.17%; S&P 500: -1.75%; Nasdaq: -1.55%) upon notice of Jerome Powell on the extent of the crisis. The Fed President has stressed that we are facing the "biggest recession since World War II", while the US economic reopening also continues to sow controversy and divide the country and the markets.

The president of the Federal Reserve (Fed) has rated the current recession in the United States caused by the coronavirus as "significantly worst since World War II". For this reason, it has asked for more fiscal incentives to mitigate the impact of the pandemic.

"Additional fiscal support could be expensive, but it's worth it if it helps prevent long-term economic damage and leads to a stronger recovery.. It is a commitment for our politicians, who exercise tax and spending powers, "he noted in a conference call at the Peterson Institute for International Economics.

For Powell, the scope and speed of this recession are without modern precedent. "We are seeing a sharp decrease in economic activity and employment, and the labor gains of the last decade have already been erased. Since the pandemic came into effect just two months ago, more than 20 million people have lost their jobs, "he explained.

Therefore, although it has considered that the economic response has been "timely and appropriate", added that "it may not be the final chaptergiven that the way forward is highly uncertain and subject to significant negative risks. "

FAUCI ALSO ALERT

Meanwhile, the pandemic continues to plague the United States. So far, they have been accounted for 1.37 million cases in American territory and the death toll reaches 82,400, according to data from Johns Hopkins University.

This Tuesday, the appearance in the Congress of Anthoni Fauci, Donald Trump's top adviser on the virus, who warned of "the danger of trying to open the country prematurely", as Trump defends.

"We are at risk of multiple outbreaks across the country. This will not only result in unnecessary suffering and death, but actually will delay us in our quest to return to normal"said Fauci, director of the National Institute of Allergy and Infectious Diseases.

In the raw materials market, the West Texas oil falls 1% to $ 25.50. Besides, the ounce of gold it rises 0.9%, to $ 1,722, while the euro depreciates 0.3% and changes to $ 1.0815. Finally, the profitability of 10-year American bond falls to 0.65% and the VIX volatility index up 5% to 34.50 points.

We remember that the New York Stock Exchange closed this Tuesday with falls of 2% for an increase in trade tensions between the US and China. The news that Donald Trump ordered a federal pension fund not to invest in Chinese stocks occurred just as the S&P 500 It was trying to overcome the resistance of the April highs, at 2,940 points.

In addition, the bullish streak of the Nasdaq, which was trading at less than 5% of its all-time highs, after chaining a bullish streak of nearly 7% for six straight sessions.

Finally, they did not like the words of the millionaire investor David Tepper, for whom Wall Street has reached a level of overvaluation only comparable to that registered in 1999, before the outbreak of the bubble of the 'dot.com'. For the founder of Appaloosa Management, there has been a "bad capital allocation"in certain" niches "of the American stock market after the stimuli of the Fed.

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