Dow Spikes Over 2,100 Points on Heels of Possible US Economic Stimulus Package
AFP 2020 / JEWEL SAMADBusiness20:00 GMT 24.03.2020(updated 20:14 GMT 24.03.2020) Get short URL25619Subscribe
US stocks made massive gains Tuesday on the news that US Senate lawmakers were on the verge of wrapping up talks on a fiscal stimulus bill – just one day after the Dow Jones Industrial Average and the S&P 500 indices marked their worst first-quarter reports on record amid the COVID-19 pandemic.
With a more than 11% rally, Tuesday’s figures mark the biggest one-day percentage gain by the New York Stock Exchange since 1933.
Oil prices, meanwhile, struggled to hold onto gains throughout the day as prices shifted between red and green territory in the hopes that a possible US stimulus package could weaken the economic impact of the novel coronavirus outbreak.
Similar sentiments were expressed by Michael Novogratz, the CEO of Galaxy Digital, during the latest showing of the financial outlet’s “Squawk Box” morning program.
“From a market perspective … it feels like we’re coming to the end of it,” he said. “It doesn’t necessarily mean the market’s going to go up, but a lot of that crazy volatility is kind of coming out.”
US Senate Stimulus Package
Despite promises to finalize a stimulus package Monday, Senate lawmakers failed to make good on their word as negotiations dragged on throughout the day on Tuesday. The day prior, a new procedural vote on the bill was blocked by Democrats for a second time.
Senate Democrats have indicated that they will not support the financial package as it stands due to the lack of aid for unemployed Americans who lost their jobs as a result of non-essential business closures initiated over the outbreak.
Earlier Tuesday, US President Donald Trump called on lawmakers to approve the deal, tweeting, “The longer it takes, the harder it will be to start up our economy. Our workers will be hurt!”
In a follow-up tweet, the commander in chief stressed that Americans want to return to work, and that Congress “must act now” in order for the US and its economy to “come back strong.”