U.S. stocks moved up sharply on Wednesday, reacting to President Donald Trump’s tweet that raised hopes of a smaller aid package sometime soon.
After opening on a firm note, stocks kept moving higher as the session progressed, and all the major averages ended with handsome gains.
The Dow ended up 530.70 points or 1.91 percent at 28,303.46, the Nasdaq climbed 210 points or 1.88 percent to settle at 11,364.60 and the S&P 500 moved up 58.49 points or 1.74 percent to 3,419.44.
The rally happened after Trump indicated he would support individual stimulus measures after calling off negotiations over a broader relief package.
“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!” Trump tweeted.
He added later that he will sign a Stand Alone Bill for Stimulus Checks ($1,200) the moment it is sent to him. “They will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?”
Today’s rally was a welcome relief for investors as the market had plunged sharply in the last couple of hours on Tuesday after Trump tweeted that he would end negotiations on a new fiscal stimulus package and said he has instructed his administration’s negotiators to stop stimulus discussions with Democrats until after the presidential election.
Honeywell International (HON), Salesforce.Com (CRM), Intel (INTC), Home Depot (HD), Nike (NKE) and Cisco Systems (CSCO) rose sharply.
Several other top stocks, including Caterpillar (CAT), General Electric (GE), JP Morgan Chase (JPM), Microsoft (MS), Walt Disney (DIS) and Apple (AAPL) also posted strong gains.
Boeing, United Airlines and Delta too rose sharply, buoyed by Trump’s comments on Airline Payroll Support.
In overseas trading, the major European markets closed weak after a choppy session. The U.K.’s FTSE 100 edged down 0.06% and France’s CAC 40 declined 0.27% and Germany’s DAX moved up 0.17%. The pan European Stoxx 600 ended down 0.12%.
The stock markets across the Asia-Pacific region ended mostly higher on Wednesday.
Source: Read Full Article