Saturday, 04 April, 2020

Wall Street jumps on hopes of US$2 trillion stimulus

The Fed’s Stimulus Plans Put Bitcoin Back in the Spotlight Coronavirus: Stocks surge on hopes for a $2-tn U.S. stimulus deal
Ginger Lawrence | 25 March, 2020, 16:43

Data on durable goods orders for February will be released at 8:30 a.m. ET, while the FHFA house price index for January is scheduled for release at 9:00 a.m. ET. The Dow Jones Industrial Average built Wednesday on its historic rally from the previous session in anticipation of a coronavirus stimulus deal by Congress. That's a rebound from Monday's losses of about 3% for both the Dow and S&P 500. Shares were also higher in Southeast Asia. The S&P 500 and Nasdaq Composite also traded lower.

Wednesday's draft higher extended a blockbuster rally on Tuesday that saw the Dow post its best one-day point gain ever and its biggest percentage gain since 1933.

Stock futures rallied on Wednesday after the White House and the Senate announced it reached a deal on a $2 trillion stimulus package created to combat effects of the coronavirus. Senate Majority Leader Mitch McConnell later said the bill is at the "five-yard line". "In effect, this is a war-time level of investment into our nation".

The latest slide came despite actions announced by the Federal Reserve to help the bond market, companies and consumers - and the central bank's vow to use "its full range of tools".

Gunmen attack Sikh religious gathering in Kabul, killing 4
Earlier this month, Afghanistan's IS affiliate struck a gathering of minority Shiite Muslims in Kabul, killing 32 people . Later he heard the sounds of explosions, adding that he believes they were hand grenades.

Helping to lift sentiment in markets is news from China that it is preparing to lift the lockdown in Wuhan, the epicenter of the outbreak, and from Italy reporting a reduction in the number of new cases and coronavirus-related deaths.

Spain experienced a record spike in coronavirus deaths, with 504 reported for Tuesday.

Total coronavirus cases in the U.S. exceeded 55,200 with around 800 deaths. "In reality, we believe it will be a combination of these, and in some cases there are already signs these are in place". "But most acknowledged the day's surge was likely just another bear-market rally, a momentary melt up after a meltdown that we will likely see again in an era of extreme volatility taking cues from the Great Depression". Capital Economics now sees second quarter United States economic growth plunging 40 percent from a year earlier and unemployment spiking to 12 percent. They believe a bounce could occur here even as coronavirus cases continue to surge because the market was so oversold.