Left Menu
Development News Edition

US STOCKS-Wall St rallies for third day as investors focus on stimulus

Reuters | Updated: 27-03-2020 00:37 IST | Created: 27-03-2020 00:37 IST
US STOCKS-Wall St rallies for third day as investors focus on stimulus

Wall Street rallied for a third straight session on Thursday as record weekly jobless claims came in below investors' worst fears and investors focused on an unprecedented $2 trillion stimulus awaiting approval by the U.S. House of Representatives. The number of Americans filing claims for unemployment benefits surged to 3.28 million last week as state-wide lockdowns brought the economy to a halt and unleashed a wave of layoffs.

The median expectation of analysts polled by Reuters was for 1 million claims, but the top end of the forecast was as high as 4 million. Expectations are high that the U.S. House of Representatives will pass the stimulus measure to support distressed industries, including airlines, after the Senate cleared the proposal.

It would flood the country with cash in an effort to stem the crushing economic impact of an intensifying pandemic that has killed about 1,000 and infected nearly 70,000 people in the United States. The benchmark S&P 500 index was on track for three straight day of gains for the first time since mid-February, before coronavirus fears stopped Wall Street's 11-year bull market. Since Monday, the S&P 500 has surged almost 15%, although it remains down 24% from its Feb. 19 record high.

"It's encouraging to see people buying a day after a big up day because we hadn't seen that in a month," said Randy Frederick, vice president of trading & derivatives at Charles Schwab. "That doesn't guarantee that the bottom is in, but it is indicative of a bottoming process." Delta Air Lines jumped 5.2%, while Boeing rose 14%, boosted by a $58 billion provision for the aerospace industry in the latest aid bill. Boeing has surged over 90% in the past four sessions.

Adding to upbeat sentiment, Federal Reserve Chair Jerome Powell said the central bank stood ready to act "aggressively" to shore up credit in the market on top of the unprecedented policy easing announced on Monday. "He said the Fed is not going to run out of ammunition and that the committee still has policy room for more action," said Charalambos Pissouros, senior market analyst at JFD Group in Cyprus.

"By saying that he raises the question - will they go for negative interest rates?" With macroeconomic indicators likely to worsen heading into the second quarter as a breakdown in business activity and fears of corporate defaults foreshadow a deep global recession, many analysts expect more wild swings in markets.

The CBOE volatility index fell 4.9 points, but was still near levels far above those in 2018 and 2019. At 2:44 pm ET, the Dow Jones Industrial Average had jumped 4.82% at 22,222.22 points, while the S&P 500 gained 4.67% to 2,591.13.

The Nasdaq Composite soared 4.03% to 7,681.73. The S&P utilities index was the strongest among 11 sectors, jumping 7.2%.

Advancing issues outnumbered declining ones on the NYSE by a 5.15-to-1 ratio; on Nasdaq, a 3.71-to-1 ratio favored advancers. The S&P 500 posted no new 52-week highs and no new lows; the Nasdaq Composite recorded 4 new highs and 13 new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION / BLOG / INTERVIEW

Public health care post-COVID 19 to go for revamping, not rebooting

Until now, the economies used to classify healthcare sector under social expenditure. However, the devastation caused by COVID 19 pandemic has upgraded public healthcare on topmost priority and core economic activity for controlling future ...

Coronavirus lockdowns to speed up long-pending revamping of supply chains

With millions of production lines impacted, business disruptions to some extent are unavoidable and the lessons learned from this turbulence will leave an everlasting impact on both global and local levels of supply chains....

COVID 19 to catalyze the redefinition of urban planning and sustainability

Until now the urban planning was focused on mitigation to natural disastrous, climate change, pollution, chronic illness and lifestyle diseases. However, the global pandemic of novel coronavirus is going to change the whole narrative of urb...

Ebola to COVID 19: Has Geopolitics prevailed over Professionalism in WHO

World Health Organization WHO is perceived as one of the most professional bodies of the United Nations. However, the role of WHO has come under question in handling outbreak two deadly diseases Ebola Viral Disease EVD and novel Coronaviru...

Videos

Latest News

UK should be prepared for "significant period" of lockdown says Cabinet Minister Michael Gove

Cabinet Minister of the UK government, Michael Gove on Sunday said that the people should be prepared for a significant period of lockdown to curb the spread of the coronavirus. Gove said, There are different projections as to how long the ...

Total number of COVID-19 patients rises to 21 in Haryana

The total number of coronavirus cases in Haryana rose to 21, with a fresh case reported from Ambala, officials said on Sunday. The total number of positive cases of COVID-19 in Haryana stand at 21, as per the bulletin of states health d...

Cities enforcing early restrictions had lower mortality rates during 1918 flu: Study

Researchers assessing the preventative measures adopted during the 1918-19 Spanish flu pandemic have found that cities which enforced early, broad isolation and prevention measures had lower mortality rates. The scientists, including Stefan...

Over 15,000 cases booked in TN for violating lockdown rules

Chennai, Mar 29 PTI The Tamil Nadu police on Sunday said it has booked 15,610 cases for violations relating to the Section 144 Cr Pc in force in the state as part of the 21-day lockdown tp contain spread of coronavirus. According to police,...

Give Feedback