Wall Street surges on hopes of $2 trillion rescue package

Washington. House Speaker Nancy Pelosi D-Calif. said Congress has started work on a new coronavirus aid package after the one just approved by the H

Washington. House Speaker Nancy Pelosi D-Calif. said Congress has started work on a new coronavirus aid package after the one just approved by the H

Stocks on Wall Street also posted strong gains on Tuesday, with investors pinning their hopes on the U.S. Senate passing a $2 trillion stimulus bill, aimed at providing financial aid to Americans out of work and helping distressed industries.

At 13:11 p.m. ET the Dow Jones Industrial Average .DJI was up 1,491.90 points, or 8.02%, at 20,083.83, the S&P 500 .SPX was up 153.38 points, or 6.86%, at 2,390.78 and the Nasdaq Composite .IXIC was up 394.84 points, or 5.76%, at 7,255.52. The S&P 500 similarly fell more than 2% and the Nasdaq was down by more than 1.5%. Since the market began selling off on February 20, the S&P 500 has had six days where it's risen, and all but one of them were big gains of more than 4 per cent.

The Dow registered its biggest one-day percentage gain since 1933 on Tuesday after USA lawmakers said they were close to a deal for an economic rescue package, injecting a shot of optimism into markets reeling from the biggest selloff since the financial crisis.

Senator Charles Schumer and Treasury Secretary Steven Mnuchin were close to a deal on a $2-trillion stimulus bill, according to reports, which cited a conference call Schumer had Monday evening with Democratic leaders.

The planemaker has lost more than two-thirds of its value so far this year as the health crisis crimped travel demand, forcing it to seek $60 billion in US government loans for the aerospace industry. The bill could be voted on as soon as Tuesday. Markets have been spiraling downward for weeks as government-mandated shutdowns have forced businesses to close and lay off workers, but the glimpse of light at the end of the tunnel - even just a rumored one - appears to have calmed skittish investors somewhat.

Coronavirus 'accelerating' as United Nations chief calls for global ceasefire
She pledged the International Monetary Fund planned a strong coordinated response working with the World Bank and other groups. Secretary General of the United Nations Antonio Guterres has called for cease fires to help fight the coronavirus pandemic .

Norwegian Cruise Lines, MGM Resorts and American Airlines Group were all up at least 33%.

US stock-index futures and global equities rose after the Federal Reserve stepped up its assistance to the American economy, saying it would back lending to businesses and buy essentially unlimited amounts of government debt. Germany, a bastion of budgetary discipline, is also mulling a big fiscal boost.

Data on Monday showed US business activity hit a record low in March, bolstering economists' views that the economy was already in recession. Reports were also gloomy for Europe. "It is at times like this that the market's propensity to look forward is demonstrated most effectively". Some say the number could be way beyond 1 million, amid a wave of layoffs, toping the prior record of 695,000 set in 1982. Severe illness including pneumonia can occur, especially in the elderly and people with existing health problems.

Meanwhile, traders remained doubtful of a long-lasting recovery in financial markets without any evidence of a peaking in the number of new COVID-19 cases.

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