Wall Street jumps on hopes of US$2 trillion stimulus

Darnell Taylor
March 26, 2020

The price action suggests investors are still paying close attention to the headlines about US lawmakers closing in on a massive fiscal stimulus bill work $2 trillion to combat the economic damage from the pandemic.

At 10:25 a.m. ET the Dow Jones Industrial Average was up 1,446.34 points, or 7.78%, at 20,038.27, the S&P 500 was up 152.18 points, or 6.80%, at 2,389.58 and the Nasdaq Composite was up 430.45 points, or 6.27%, at 7,291.13.

The S&P 500 was drifting between gains and losses in the first few minutes of trading, a day after packing a year's worth of gains into Tuesday on expectations that Washington was close to a $2 trillion deal to aid the economy.

NY futures were lower, with the contract for the S&P 500 down 0.7%, while that for the Dow fell 0.2%. Communication services dropped 1.59 per cent, representing the worst-performing group.

The U.S. aid package would be the country's largest stimulus ever, but an early rally on Wall Street faded Wednesday as disagreements over its details blocked a congressional vote, raising questions about when the plan might take effect.

Congress and the White House did announce an agreement early Wednesday, with the Senate possibly voting on it in the afternoon.

The number of known infections has leaped past 435,000 people worldwide, and more than 19,000 have died, according to Johns Hopkins University.

85 new cases of COVID-19 confirmed in Ontario, including two deaths
Williams was asked about reports of some long-term care homes not enforcing social distancing between long-term care residents. They're especially important now, given that COVID-19 is a respiratory illness that can seriously affect the lungs.


Tuesday's point gain followed a dark day for Wall Street, as Monday saw a 600 point plunge after the stimulus package failed to gain approval for the second time.

For most people, the new coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks.

MSCI's gauge of stocks across the globe surged 2.65% and emerging market stocks rose 4.32%. They're forecasting a report on Thursday will show a record number of Americans filed for unemployment benefits as layoffs sweep the country. The yield on the 10-year Treasury inched up to 0.82% from 0.81% late Tuesday, and the two-year yield slipped to 0.35% from 0.37%.

Royal Caribbean Cruises and Norwegian Cruise Line Holdings each rallied by about 23 percent. A 9.2% gain in Nike also boosted the Dow. It also said sales are bouncing back in China, where the outbreak has eased and most Nike stores have reopened.

In energy markets, benchmark US crude lost 34 cents to $24.15 per barrel in electronic trading on the New York Mercantile Exchange. The Japanese yen strengthened 0.03 per cent versus the greenback at 111.20 per dollar. Brent crude, used to price global oils, declined 23 cents to $29.76 per barrel in London.

All three main US stock indexes jumped about 6%, swinging back from another brutal selloff in the previous session as the virus outbreak forced entire nations to shut down. The euro gained to $1.0905 from $1.0880.

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