Published: Wed, March 25, 2020
Markets | By Otis Pena

Dow Jumps A Record 2100 Points As Stimulus Deal Awaited

Dow Jumps A Record 2100 Points As Stimulus Deal Awaited

The major averages pared losses midday after Senate Minority Leader Chuck Schumer said he expects the Senate to on Monday reach a deal on a massive fiscal stimulus package.

On Wednesday, the US Senate and the White House reached a deal on a massive $2 trillion relief bill to combat the economic impact of the coronavirus outbreak.

At 10:25 a.m. ET the Dow Jones Industrial Average was up 1,446.34 points, or 7.78%, at 20,038.27, the S&P 500 was up 152.18 points, or 6.80%, at 2,389.58 and the Nasdaq Composite was up 430.45 points, or 6.27%, at 7,291.13.

Overnight, the Dow closed at 20,704.91, while the more closely followed S&P 500 index, which is vital for most 401 (k) accounts, leaped 9.4% to 2,447.33. The S&P 500 opened higher by 107.04 points, or 4.78%, at 2,344.44.

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".

Coronavirus infections approach 25,000 in Spain, with 1,328 deaths
Officials cautiously highlighted that the number of new daily registered cases had dropped by 26 per cent from Saturday to Sunday. Spanish Prime Minister Pedro Sanchez said that the country's situation was close to its most hard since the 1936-39 civil war.

"If there's not too much damage done to the workforce, to the businesses during the shutdown period, however long that may be, then we could see a fairly quick rebound", Bernanke said.

Traders, however, remained doubtful of a lasting recovery in financial markets without evidence of a peaking in the number of new COVID-19 cases. Globally, more than 400,000 cases have been confirmed, according to data from Johns Hopkins University. "In reality, we believe it will be a combination of these, and in some cases there are already signs these are in place".

Wall Street posted its best performance in almost 90 years on Tuesday, as indices rallied on hopes that lawmakers would soon agree on a massive stimulus measures to blunt the coronavirus' economic impact. "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".

"I don't think there's any more confidence in the fundamental outlook, but the fact that we're making progress is good news", said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

-CNBC's Jesse Pound contributed reporting.

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