Wall Street surges on hopes of $2 trillion rescue package

Enlarge this image

U.S. Treasury prices are pulling back, driving yields higher across the curve, with the two-year yield up 6 bps to 0.35% and the 10-year yield up 11 bps to 0.86%; U.S. Dollar Index -1% to 101.52.

The S&P 500 was up 6.1%, shortly after 2 p.m.

North American stocks jumped at the open on Tuesday as signs that Washington was nearing a deal on a $2-trillion rescue package for the coronavirus emergency gave a shot of optimism to markets reeling under the biggest selloff since the global financial crisis.

All three main US stock indexes jumped about 6%, swinging back from another brutal selloff in the previous session as the virus outbreak forced entire nations to shut down. The Shanghai Composite Index was 2.3% higher at 2,722.44 and Hong Kong's Hang Seng gained 4.5% to 22,663.49.Australia's S&P-ASX 200 gained 4.2% to 4,735.70 and India's Sensex added 3.1% to 26,776.71.

The 7% jump in the blue-chip index on Tuesday put it on pace for one of its best days in the last 12 years, second only to a 9.4% jump from last week.

"People woke up this morning to realize that legislation will be passed".

Boeing, once a symbol of USA manufacturing strength, jumped 17% after Chief Executive Officer Dave Calhoun said the company still expected a "mid-year" return to service of the 737 MAX aircraft.

Suncor Energy on Monday cut its 2020 production outlook and suspended share repurchases for the year following the decline in crude oil prices and the economic impact of the coronavirus outbreak.

Ultimately, investors say they need to see the number of new infections peak before markets can find a floor.

Data on Monday showed USA business activity hit a record low in March, bolstering expert views that the economy was already in a recession.

Boeing rose almost 9% and was the top gainer among Dow components. After negotiations dragged through the night, a Senate vote could come later Tuesday. It has been pressured in recent weeks by the demand destruction caused by the virus and a price war between producers Russian Federation and Saudi Arabia.

In energy markets, benchmark USA crude rose $1.40 to $24.76 per barrel in electronic trading on the New York Mercantile Exchange, while Brent crude, used to price worldwide oils, added $1.17 to $28,20 per barrel in London.

"The energy complex is posting a strong rebound on Fed unlimited QE (Quantitative Easing) and expectations for a major US fiscal package today", said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.



Latest news

Sixers, Devils owner Josh Harris reverses course and will not cut salaries
An important note is that teams players do not fall in the same category as the employees experiencing pay cuts, but that doesnt mean they will lose income soon.

India shuts down flights, big cities as coronavirus toll rises in region
The capital's borders with neighbouring states such as Uttar Pradesh and Haryana were clogged with cars trying to get across. All places of worship will be shut, the minister added, asking people not to leave their homes unless it is unavoidable.

133 from cruise ship in Australia tested positive
The cabins had not yet been sanitized at that point, and CDC researchers said it was too early to draw conclusions from the data. At the Grand Princess , crew members were likely infected on Trip A and then transmitted SARS-CoV-2 to passengers on Trip B.

'The Mandalorian:' How Rosario Dawson Can Move Ahsoka Tano Forward
With the coronavirus pandemic slowing down the entertainment industry, it is most likely the show will also see some delays. Filming of " The Mandalorian " Season 2 has wrapped and the show is now in the postproduction phase of development.

U.S. senators quiz Amazon on COVID-19
Bezos warned that due to the economic impact caused by the CCP virus , the situation is likely to get worse before it improves. Bezos said that Amazon has increased the cleaning work and also enforced social distancing at its work places.

Other news