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Stocks - Dow Nears Session Highs on Bets of More Stimulus

Published 03/26/2020, 01:05 PM
Updated 03/26/2020, 02:46 PM
© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow neared session highs on Thursday underpinned by a wave of optimism that Federal Reserve and Congress will continue to rescue the economy at a time when nationwide containment measures have brought business activity to a halt and sparked a record jump in unemployment claims.

The Dow jumped 4.97%, or 1,053 points, the S&P 500 surged 4.83% and the Nasdaq Composite rose 4.09%.

With Congress expected to pass a $2 trillion stimulus package and Fed Chairman Jerome Powell reiterating the central bank's pledge to ramp up its bond-buying program, investors are betting big on stocks once again.

In an interview with NBC News earlier Thursday, Powell conceded that the U.S. "may well be in a recession," but the Fed is "working hard" ensure that an eventual recovery will be strong as possible.

"When it comes to lending, we are not going to run out of ammunition,” he added. "That just doesn’t happen."

The pledge from the Fed chief came as Covid-19 infections in the U.S. surged above 75,000, with deaths topping 1,000. The lockdown measures to combat the virus has forced major disruptions across businesses, the effect of which was seen in the weekly initial jobless claims figures, which came in at 3.3 million. Claims hadn't topped 700,000 before. 

Industrials, meanwhile, continued to get a lift from Boeing (NYSE:BA), up 14%, as the stimulus bill - expected to be approved by the House – will provide the aviation sector with much-needed fiscal boost.

Financials, led by banking stocks also joined in on the rally even as Treasury yields fell sharply.

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JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS), and Bank of America (NYSE:BAC) rallied more than 5%.  

Lower interest rates are typically a headwind for banks, weighing on net interest margin – the difference between the interest income generated by banks and the amount of interest paid out to their lenders.






 

Latest comments

No one is reporting on virus spread... All cover up
Powell is such an inept weasel...  He will destroy this economy, when they do the postmortem when all is said and done it will be his actions that did the most damage to the country.
many drug addicts
The crash started on Black Thursday, 24 October 1929, when the Dow fell by 11%. ******However, it recovered slightly by 1% on 25 October 1929 when investment bankers bought stocks to stem the panic.****** This did not last long however, and the Dow fell by 13% on Black Monday, 28 October 1929 and 12% on Black Tuesday 29 October 1929. In fact, observers estimate investors sold 16.41 million shares in day on Black Tuesday. Moreover, the Dow lost 36% or over one third of its value in three days, falling from 305.416 on 23 October 1929 to 195.466 less than a week later.
I'm gunna love it when we hit an all time high in the dow while dead bodies are piling up and 80% of the population is unemployed.
bodies that wouldve died anyways from the flu
 Well considering the flu still exists I'm guessing there will be more bodies than usual with both going around
Like crack addict, never enough.
why stock higher even data is positive too much ?
Someone print me 1 million please.
Power to the Ponzi
Boeing promised loans. Their stock skyrockets then the shares they have bought back in the past should be worth more hence not needing a loan of that magnitudeWas their purchase of Embraer negated?How can a company necessitatins an injection of 54 bn. be able to purchase another company.The interest rate better be a hefty one and this time the bailout money should be accounted for when paid off
Dont be mislead by this rally The feds are busy buying up everthing they see in sight and pumping up the stocks also i noticed they are only buying stocks that are listed on the dow or nasdaq nothing more a lot of my shares which are not listed on either have gone down even today This is being done to show the confidence in the markets.With the highest level of unemloyment filling this week and most companies are either. Losed or functioning at minimum resourses there is no reason there should be a rally like this. The feds have taken put their bazzokas and pumping up everything whats going to happen when they become sellers in a few years
Its not stimulus. That was priced in. The virus is done for. These articles as not honest.
I'm sure all the people being laid off are really relieved that the Dow is climbing again. Enjoy the $1,200; think of all the cake you can buy with that. 30K again in a couple weeks right? Bagholder nation.
I'm laid off and when I get my cash it's going right into the market.
where did you get laid off from?
effing criminal in the name of a chair. Honestly baffling that for every single correction in market in last 5 years, fed has reacted as if it's an apocalypse. when will we realize that it's a healthy movement for market to retract, test lows and gradually recover. I'm 27 and at this rate I'll stop contributing to 401k because this is not sustainable at all in a longer run. Bubble has to burst at some point, you can't just continue to pump air from everywhere.
only thing of value will be stocks... currency toast, and gold will die from deflation
They HAVE to keep everything afloat because this is a ponzi scheme.  If it goes down to much, everything below will start to crack and the whole thing comes tumbling down.
lol US debt per citizen was 350 k$ good I guess Bretton Woods will be back sooner than later.
globalist media working over time to bash and fake news trump, meanwhile polls just came out showing his approval has hit all time highs, disapproval dropping. meanwhile biden is on CNN coughing into his hand and losing his train of thought even minute as the dementia worsens right in front of our eyes.
Vote blue no matter who!
How can you vote for Trump talking BS?
globalist media working over time to bash and fake news trump, meanwhile polls just came out showing his approval has hit all time highs, disapproval dropping. meanwhile biden is on CNN coughing into his hand and losing his train of thought even minute.
for the bernie bros who do not seem to understand the different between socialism/communism and disaster relief, the government mandated many businesses close and people do not go to work. this is not the government paying people taxpayer funds simply because they exist. you have to be deeply brainwashed to not be able to understand the difference between a socialist party platform and disaster relief interventions. it is no wonder the far left agenda is suffering so much while the moderate republicans are winning, and sites like this one working overtime to ban non-democrat opinions.
thank you for proving my point perfectly. also why fox news ratings have hit all time highs, and fake news like CNN and MSNBC have hurt multi-year lows.people like you living in an echo chamber trying to silence others are a perfect example of what i am referring to.
so what you are saying is that only fox news is allowed to have a different opinion than your own? explains why they are doing so well :)
This isn't the place for your political propaganda. The only point you've made is that you're ignorant, undisciplined and rude. This is an investment platform, not an outlet for desperate Trump c
Young people are being screwed by the older generations in ways they can’t even imagine.
for the bernie bros who do not seem to understand the different between socialism/communism and disaster relief, the government mandated many businesses close and people do not go to work. this is not the government paying people taxpayer funds simply because they exist. you have to be deeply brainwashed to not be able to understand the difference between a socialist party platform and disaster relief interventions. it is no wonder the far left agenda is suffering so much while the moderate republicans are winning.
So unlimited printing
trumps approval has risen to historic highs, while his disapproval has fallen. only people complaining are those on the twitter echo chamber and globalist media
Maybe his approval has risen, dont care to check. Its the biggest cash heist thats taken away from the people while they distract us with a virus and other BS. Only the very few who dont rely on anyone or anything for money will survive. Even those with good paying jobs that just got laid off...thats a form of socialism, you rely on your employer for a paycheck...good employee, bad employee, you still get a check. You need to be self sufficiient, be your own bank, your own finacial entity and none of this will phase you. Unfortunately it’s not inculcated in us to do so...meanwhile they want us bickering at each due to different political views, etc...and thats the globalists plan. Keep us entertained among each other as we continue to grow more hate against one another, while The Fed/Central Banks/Globalists take our cash. Its happening right now, right under own nose. All these people, The Fed, All of Congress, etc...they all sleep on the same bed! Cheers!
I do agree mate. Many people here still believe on American way of life : consume consume consume, if you can't and the majority doesn't: we give you credit and debt at 17% at least we keep you under control ( modern slavery) and we garantee you happiness ;)
thats correct!! Its always been intended to be this way. Majority of people beleive the charades and cant see behind the facade and because they cant see behind it, most people will unfortunately feel it and struggle through it.
I thought for a second this was referring to 3M the company. 😅
the cure of covid19 has been found and costs $2T
When the going gets tough, the tough gets socialist.
the re-education seems to be working well comrade, equating all government interventions with socialist platform
 Printing nonexisting money to save buisnesses or to give it to the people is socialism. Belive me I live in post-soviet country. Things like printing money were the first nail in the coffin to the economy. If they gave existing money as loans - this would be quite different of what they are doing right now. Especially in case where people lose jobs and buisnesses are closing down. There is no real production that would give value to the money given. You are going into a high inflation territory. Of course the banks/corporations will be saved like in 2008, but the public will get its fair share of socialism practices - nothing for them but weaker buying power. Nothing new under socialism.
correct!
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