The S&P 500 was up 2563.20 or 4.7% and Dow Jones Industrial Average was up 1,231.62 points, or 6% in a day of exuberant trading betting on the passage of a $2T recovery package working it’s way through Senate negotiations. It was the second day of gains and followed a bellwether Tuesday when the DJIA saw an 11% increase on President Trump’s aspiration of getting America back to work by Easter Sunday.
The Chinavirus has effectively shut down large and important sectors of the US economy and delivering government relief to Transportation, Travel, Food Services, Hospitality and other Service Industries hit by business has become a priority. The Senate worked on a rescue package in a bipartisan manner to write an 800+ page bill that passed unanimously.
Now the Federal Government has a huge pot of money to keep key businesses and entire industries solvent. The money will also be used to offer direct relief to workers who have found themselves without work due to quarantine restrictions.Though there is significant pork crammed into the legislation the most important funding is the $650B to the Federal Reserve which can be leveraged into $4T in loans to businesses the need liquidity.
- Bernanke: Coronavirus Disruptions ‘Much Closer To A Major Snowstorm’ Than The Great Depression
- Trump Says He’d Like To Have Economy Open By Easter