S&P, Dow extend rally as investors await $2 trillion aid package; Europe ends higher


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S&P, Dow extend rally as investors await $2 trillion aid package; Europe ends higher

On Wednesday, the 25th of March 2020, the benchmark Standard & Poor 500 index alongside Dow had extended their rallies as the US senate appeared to be getting closer to pass a $2 trillion fiscal aid to support businesses and individuals, while following another tumultuous session, a majority of European stock indices had rounded off the day in the greens despite shattered investors’ optimism amid a clattering wave of coronavirus pandemic pouring perils on major European economies.

In point of fact, Wednesday’s (March 25th) rallies in the Wall St. alongside a number of European stock exchanges were almost entire prodded by investors’ hope over a monumental aid package to battle the coronavirus outbreak, while US Treasury’s Mnuchin had proposed a $2 trillion aid package that included $1,200 for every adult American nationals and $500 for each child to see through the coronavirus pandemic alongside other measures for businesses to weather a steep downturn in US economy which analysts said could be much worse than the Great Financial Depression of 2008.

Nonetheless, despite a solid beginning of the day, a slew of US stocks had pared earlier gains at late-afternoon trading over scepticisms that a divided US Congress might not pass the $2 trillion fiscal stimulus as quickly as anticipated, but European stocks had managed to wrap up the day higher over optimisms of further monetary stimulus and the regional pan-European STOXX 600 had winded down the day 3.1 per cent higher.

Meanwhile, citing that the investors were clinging on to a shimmering ray of hope which would unlikely to sustain given the exponential growth of newer coronavirus cases in the bloc’s major economies alongside in the United States, a head of fixed income strategy at Piper Jaffary in Chicago, Justin Hoogendoorn said on Wednesday (March 25th), “What the fiscal and monetary stimulus has done is to allow the market to recover.

It’s not because the main street community is coming back. It’s the institutional crowd being able to say, ‘the world isn’t falling apart’. ” Citing statistics, on Wednesday’s (March 25th) market wrap-up, S&P added 1.15 per cent to 2,475.56, Dow gained 2.39 per cent to 21,200.55, while Nasdaq lost 0.45 per cent to wind up Wednesday’s (March 25th) market at 5,688.20.

On the other side of the Atlantic, London’s FTSE 100 gained 4.45 per cent to 5,488.20, while the bloc’s benchmark Euro STOX rose by 3.27 per cent to 1,235.83.