Stock Market Rebounds at Stimulus News, Biggest Day for Dow Since 1933
Stock prices soared on Tuesday, recovering a portion of the value markets have lost in the coronavirus epidemic in the greatest single day for the Dow Jones since 1933.
The Dow closed up 11.4%, and the S&P 500 surged by 9.4%.
The market surge appears to coincide with developments suggesting that a stimulus package in response to the coronavirus recession appears to be nearing agreement with Democrats and Republicans. Steven Mnuchin and Chuck Schumer suggested that they would reach a final agreement on the deal when speaking to congressional press on Monday night.
It’s possible the market was reacting to a suggestion by President Trump that he’d like to see the economy return to normal function by Easter.
The coronavirus epidemic has been devastating for the stock market, with declines in share value approaching that last seen during the 2008 Great Recession. Today’s surge in value suggests that the crisis might ultimately prove to be far less lasting than the last recession, and that the economy will recover when the virus is adequately contained.
Today’s stock market surge places the Dow Jones back over 20,000, leaving the index at 20,704.91 to end the day.
The United States is far from out of the woods in facing down the economic hardship created by the Chinese coronavirus, but the upward trend of markets to the upcoming stimulus package is perhaps a sign that recovery is near. A vote to pass the coronavirus stimulus package is expected on Wednesday as Democrats and Republicans near final agreement on the terms of the nearly $2 trillion package.