As President Trump and Nancy Pelosi near a deal on economic relief for the coronavirus stocks on Wall St. are surging.
According to The Daily Wire:
After the worst losses since the 1987 “Black Monday” market crash, U.S. stock futures surged early Friday, reaching their “limit up” level of 5% and setting expectations for a significant rebound after the S&P fell 9.5% Thursday. The movement follows signals from House Democrats that they are close to working out an economic relief deal with President Trump, who has laid out a series of emergency relief measures, including payroll tax cuts through the end of the year.
“S&P 500 futures jumped more than 5% to reach their ‘limit up’ level,” CNBC reported Friday morning, in reference to the ceiling set for buying ahead of regular trading. When trading opened, stocks took off. “The Dow Jones Industrial Average soared 1,000 points at the open, or 4.7%,” CNBC reports. “At one point, the Dow was on pace for its biggest one-day gain since March 2009. The S&P 500 jumped 5.2% while the Nasdaq Composite surged 5%.”
As CNBC notes, the positive movement — which includes major gains for Apple (up nearly 7%), Delta (14%), United (9.5%), American (9.2%) and JetBlue (3.6%) — follows Pelosi telling the press Thursday night that House Democrats and the White House have “resolved most of our differences.”
On Wednesday, the Democrats unveiled a multi-billion-dollar relief package, which was immediately criticized by Republicans for including non-coronavirus-specific items and no price tag. On the same day, Trump delivered a televised address in which he detailed a series of “unprecedented” economic relief measures.
The federal government is working overtime to respond to this crisis and only time will tell if it works.