Optimism about US lawmakers’ fiscal rescue plan on Capitol Hill gave the Dow Jones stock index the largest intraday point gain ever in history and the largest percentage increase since 1933. The index strengthened by 2,112.98 points (11.37%) to 20,704.91 during the day. points. Investors are betting that lawmakers will support the approval of a stimulus package to rescue the declining US economy hit hard by the Covid-19 pandemic, amounting to USD 2 trillion. The S&P 500 index strengthened by 9% and the Nasdaq Composite added 8.12%.
After days of much controversy, US lawmakers are reportedly approaching the final version of an agreement to set up a rescue package to deal with the aftermath of Coronavir. We could wait for the vote on the bill this Wednesday 25.3. The bill could include measures to support the economy, such as tax breaks or financial assistance for large companies.
A strong price rally on Wall Street was led by shares of energy and industrial companies.
Shares of energy companies, which were among the most affected sectors, rose hand in hand with a sharp rise in oil prices by 16%. The industrial sector was then led upwards by a sharp rise in the price of Boeing shares, up to 20%, backed by investors’ bet that the aircraft manufacturer will be one of the companies that will be entitled to a financial injection. President Trump also confirmed this in a statement to Fox News, stating that he does not intend to let the American aircraft manufacturer go bankrupt.
Source: Investing.com, Barchart.com, Bloomberg.com