In a volatile trading session at which the White House signaled its intention to launch the largest stimulus package since the major recession in 2008, US stocks offset yesterday's losses, with major indices rising sharply.
The return to earnings was welcomed after the stocks saw huge losses earlier in the week and for the third time in the current trading period triggered the market breakers associated with the spread of the COVID-19 virus.
The response to the White House's plan to contain the economic consequences of the virus is receiving good grades, at least today.
Part of the plan is direct cash support to Americans. Other government measures will provide for paid medical leave, although Americans will still lag significantly behind the rest of the world in terms of worker care. How a couple of weeks of paid vacation stand up against a patchwork quilt, but an increasingly broad national quarantine is currently unclear. One of the country's leading political parties was against a more permanent solution.
The US government is not alone in its economic plans. Britain, for example, today announced a package of almost $ 400 billion. Many other governments have implemented other packages and the central banks are also doing their part.
While the government's response is massive, markets and investors may need more security.
Today at the bell the scorecard was as follows:
- Dow Jones Industrial Average: rose 4.93% or 994.50 and closed 21,183.02
- S&P 500: rose almost 6% or 142.67 points at the end 2,528.80
- Nasdaq Composite: rose 430.19 points or 6.23% and closed 7,334.78
Each index remains well below its recent highs, and all three are still in the bear market area.
Slack, the popular workplace app that was hit a little lightly according to their instructions, recovered today. Uber and Lyft, which have been hard hit in the past few weeks as the world slowly comes to a standstill, have fallen today.
SaaS stocks rallied as a group, but could not offset much of their recent highs. They remain strongly depressed compared to previous levels. Cryptos have also recovered in the past 24 hours, but, like most assets, remain well below previous highs and other local peaks.
In short, although today's trade was more than welcome, it was only lukewarm after the epic sellout on Monday. And as US COVID 19 numbers rise, it's unclear whether tomorrow's Tuesday direction will follow. After all, this rally came after a collapse.