Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US stocks soar on hopes for a US$2 trillion stimulus package, Trump’s aim to resume business by Easter

Dow Jones Industrial Average jumped nearly 2,000 points, or 10.4 per cent on Tuesday; S&P 500 rose by 8.7 per cent and Nasdaq closed 7.7 per cent higher. The rebound from Monday’s sell-off was fuelled in part by President Donald Trump’s aim to resume business-as-usual by Easter

US stocks surged on Tuesday as congressional leaders said they were close to a deal on an unprecedented financial stimulus package to combat economic disruption expected as the coronavirus pandemic keeps businesses closed.

The Dow Jones Industrial Average jumped nearly 2,000 points to close up 10.4 per cent, its best percentile gain since 1933. The S&P 500 stock index was up 8.7 per cent, while the Nasdaq composite soared 7.7 per cent.

Stocks continued to build on the gains throughout the day. The turnaround followed a volatile session on Monday that sent stocks swooning after lawmakers failed to reach agreement on a rescue bill twice in as many days.

US President Donald Trump said during an interview with Fox News on Tuesday that he was considering reopening the economy within weeks, not months, dismissing criticism from medical experts, who warn that resuming business-as-usual might backfire.

“I’d like to see the country re-opend up by Easter,” on April 12, he said. “We cannot let the cure be worse than the problem.”

It was unclear how Trump would achieve that, however, since the stay-at-home and business-closing orders that have shuttered New York, California and elsewhere have been issued by state and local officials, not the federal government.

Lawmakers are negotiating the final details in a stimulus plan that mounts to about US$2 trillion to help the US economy go through the pandemic, which has so far had more than 50,600 cases confirmed in the country, with more than 600 deaths.

Senate Republicans and House Democrats are still battling on what portions should go to businesses or individuals. House Speaker Nancy Pelosi perhaps provided the markets their most hopeful news when she told CNBC on Tuesday morning that she believed a deal could be reached soon.

“I think there is real optimism that we could get something done in the next few hours,” she said.

The plan is said to include payments of US$1,200 to many American adults and another US$500 for children. It contains US$850 billion in loan and assistance programs for hard-hit businesses such as airlines, hospitality industry and small businesses. The programmes also include help for hospitals and health care providers, as well as cities and states.

Investors were also waiting for the release of March data on US manufacturing and services industries.

The optimism among US investors followed gains in European and Asian stocks overnight.

The Hang Seng Index finished with a 4.5 per cent gain at 22,663.49. The Shanghai Composite ended 2.3 per cent higher.

“Investors in Asia are focusing on the latest QE move [qualitative easing by the US Federal Reserve]. They believe Asia stocks will benefit from improving liquidity,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai.

He said that traders were bottom-fishing for stocks battered by the pandemic, leading to the big gains, but he did not see the rally being sustained.

South Korea’s Kospi closed up 8.6 per cent, and the tech-heavy Kosdaq jumped 8.3 per cent. Japan’s Nikkei 225 closed with a 7.1 per cent gain.

Australia’s S&P/ASX200 closed up by 4.2 per cent while New Zealand’s S&P/NZX50 shot up 7.2 per cent at the close. Singapore’s Straits Times Index rose 6.2 per cent.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×