Wall Street jumps on hopes of US$2 trillion stimulus

  • Wall Street jumps on hopes of US$2 trillion stimulus

Wall Street jumps on hopes of US$2 trillion stimulus

US stocks made massive gains Tuesday on the news that US Senate lawmakers were on the verge of wrapping up talks on a fiscal stimulus bill - just one day after the Dow Jones Industrial Average and the S&P 500 indices marked their worst first-quarter reports on record amid the COVID-19 pandemic.

The S&P 500 has lost more than $9 trillion in value from its mid February record high, while the Dow Jones erased over three years of gains in one month. The Nasdaq closed up 557.18 points at 7,417.86, for a gain of 8.1%.

Oil, gold, silver, copper and iron ore all rose, while the Aussie dollar ended over 59 United States cents and 10-year U.S. bonds were trading around a yield of 0.87% and Aussie 10 year bonds were at the same level.

The Federal Reserve on Monday mounted an extraordinary new array of programs to offset the "severe disruptions" to the economy caused by the coronarvirus outbreak, backstopping an unprecedented range of credit for households, small businesses and major employers.

Investors were likely hopeful that US lawmakers were close to settling on a stimulus bill meant to help the economy amid the coronavirus outbreak.

There's a separate proposal in the US House of Representatives to grant airlines and contractors a $US40 billion bailout which looks like its approaching agreement.

Wall Street posted its best performance in almost 90 years on Tuesday, as indices rallied on hopes that lawmakers would soon agree on a massive stimulus package to blunt the coronavirus' economic impact.

The real estate sector was boosted by a 12% rise in Goodman Group securities and an 18% rise for GPT.

The stocks rally buoyed a slew of companies, including American Express, whose share price rose by 21.9 per cent, and Chevron, which climbed 22.7 per cent after it said it still meant to issue a dividend to shareholders. On Tuesday, the market had another record day. Macquarie Group shares jumped 11%. As of Wednesday morning, it was still hovering around a still-high 60 level.

Earlier, Asian stocks also increased.

On US stock markets, Norwegian Cruise Line Holdings and American Airlines were among the companies posting the biggest gains, rising 42% and 36% respectively.