The U.S. markets clawed back into positive territory after the Dow Jones dropped over 500 points. The scheduled Congress hearing about deploying another round of stimulus checks could rally the Dow Jones ending the trading week.
Stock futures rose higher during off-market hours, adding an opening gain of around 64 points for the Dow Jones futures. The Dow Jones rallied more than 300 points while the S&P 500 and Nasdaq gained around 1%.
Bank and energy stocks were the heroes for the major indices, along with Google and Apple shares adding strength to the massive gains.
Despite the warnings imposed by the Fed, as well as Dr. Anthony Fauci’s remarks about reopening the U.S. too soon, Wall Street entered into another illusory rally amid the coronavirus pandemic.
In addition, the U.S. and China trade deal is most likely blown up as the Trump administration continues its barrage of accusations towards China for unleashing the coronavirus.
Analyst says he’s bullish on a vaccine over the entire U.S. stock market
In recent news about Warren Buffet’s Berkshire Hathway pulling their airline investments and staying in cash, American billionaire Nelson Peltz is currently putting money on the healthcare sector.
The Chief Executive of Trian Partners told CNBC that he’s prepared the fund’s capital for new investments. Although he did not disclose which two companies he wanted to buy, the recent market sell-off made the equities a good sign to purchase.
Planning to support Donald Trump in the next election, he also praised the administration for its efforts especially with generating jobs. Peltz told CNBC:
“His policies, to me, are the right policies for America. These are the right policies — these policies should have been put in place ages ago […] We have exported tens of millions of jobs — of manufacturing jobs over the last 40, 50 years, pick whatever time frame you want. We exported them generously: We gave them to Europe, we gave them to Asia. Now it’s time to bring those jobs back.”
The White House ready for another batch of stimulus checks
Earlier this week, the White House has issued another statement claiming that they are ready to support the Americans through “pro-growth, middle-class tax and regulatory relief.”
The first round of checks was already approved and distributed by Congress. The house is scheduled to vote today on a US$3 trillion [AU$4.6 trillion] stimulus bill.
Here are some of its notable provisions:
- $1 trillion worth of relief for state and local governments
- Direct payments for individuals and households worth $1,200 to $6,000
- $75 billion for efforts in restarting businesses through COVID-19 testing and contact tracing
- Rent, mortgage, and utility assistance worth $175 billion
The fate Dow Jones now lies in what the U.S. government will do from this point going forward.
Featured image courtesy of f11photo/Shutterstock