The Dow soared more than 2,100 points Tuesday, or over 11%, notching its biggest one-day percentage gain since 1933 and its best point increase ever.
(MENAFN - Baystreet.ca) The Dow Jones Industrial Average jumped more than 13% in two days as a coronavirus stimulus deal was agreed upon by Congress.
Now that the massive US stimulus package has been agreed to in the Senate, the question on Wall Street is on timing: how long will it take to reconcile the House and Senate versions and get it on the desk of the president to sign?
The S&P 500 was down 1.4%, as of 10 a.m. The market is now down almost 27% since setting a record high a month ago.
The White House and Senate early in the day announced an agreement on a US$2 trillion economic rescue package to bolster the U.S. economy and help millions of Americans put out of work with businesses shuttered due to the coronavirus outbreak.
"They're hitting on all the right elements of what the USA economy needs during the shutdown to bridge itself to the other side to open up economic activity", said Darrell Cronk, chief investment officer of Wells Fargo Wealth and Investment Management.
NEW YORK, March 26 ― The dollar slid and global equity markets marched higher yesterday for a second day of gains, on optimism US$2 trillion (RM8.87 trillion) in U.S. fiscal stimulus will dampen the economic shock the coronavirus pandemic has started to inflict. The Federal Reserve and other central banks are also offering tremendous aid by cutting interest rates and supporting lending markets, but investors say they need to see the number of new infections peak before they can feel comfortable knowing how deep the looming economic downturn will be. That was seen as a positive by some market players.
The number of COVID-19 cases in the U.S. topped 60,000 as of Wednesday noon, according to the Center for Systems Science and Engineering at Johns Hopkins University. Overall, more than 111,000 have recovered.
With fears of a global recession and corporate defaults running high, and expectations of a continued surge in cases of the illness caused by the new coronavirus in the United States, many investors remained reluctant to call an end to Wall Street's recent, staggering selloff.
"People have to contend with the idea that the longer that lasts, the more people potentially are losing their job", said Yousef Abbasi, director of USA institutional equities at INTL FCStone.
The S&P index recorded no new 52-week high and one new low, while the Nasdaq logged two new highs and 36 new lows. Monday also marked the largest single-day point drop as the market lost 3,000 points.
The uncertainty has carried over even to trading within a certain day or a certain hour. Royal Caribbean Cruises jumped 23%, but it's still down by 68.2% for the year. Germany's DAX was down 0.8%, and the French CAC 40 was up the same amount.
Treasury yields were holding relatively steady.