European stocks and Dow Jones Industrial Average futures swung between gains and losses on Wednesday, after the U.S. Senate and White House negotiators reached agreement on a massive coronavirus stimulus bill following marathon talks.
Optimism ahead of that deal led to the best one-day gain for the Dow industrials since 1933. Announced shortly after midnight, the $2 trillion package will include direct deposits for all Americans and $367 billion in loans for small businesses.
The Stoxx Europe 600 index
whittled a 4.3% gain down to 1.1% and the German DAX turned a 4% gain into a 0.8% loss. Tuesday0100’s 8.4% surge for the Stoxx 600 marked the biggest one-day percentage gain since November 2008.
The markets may have gotten ahead of themselves with Tuesday’s gains, said Craig Erlam, senior market analyst, U.K. & EMEA at OANDA
“Obviously, a $2 trillion stimulus plan is huge. I feel like all of these stimulus measures, monetary and fiscal could turbo charge a recovery when it happens, but I think any sustainable recovery in markets will be hard pushed when we’re still seeing increasing lockdowns, increasing numbers of cases and deaths at a faster rate,” he said in a telephone interview.
In the U.S., where newly detected cases have soared past Iran, Germany, and Spain, infections totaled 55,225 cases and 802 deaths, according to the Johns Hopkins Whiting School of Engineering’s Centers for Systems Science and Engineering in a Wednesday update.
New York state remains the worst hit with 25,665 cases as of Tuesday afternoon. Spain reported more than 700 deaths on Wednesday, a new record.
U.S. stock futures swung between gains and losses. Dow Jones Industrial Average
futures reversed a rise of 723 points to gain 23 points to 20,630, while S&P 500
and Nasdaq-100 futures were down nearly 1% each. The Dow soared 2,112.98 points or 11.4%, to close at 20,704.91 on Tuesday, as lawmakers inched toward that rescue package. Oil prices also turned lower, with West Texas Intermediate crude down around 2%.
Asian markets rose sharply, with the Nikkei 225 index
The Senate reconvenes at noon and is expected to easily pass the legislation, which will then go to the House of Representatives.
President Donald Trump said in an interview on Tuesday that he’d like to see the country back up and running by Easter
, on April 12, but some experts have pushed back against an early easing in restrictions. Gov. Andrew Cuomo said on Tuesday that an alarming and rapid spread of the virus in New York City would crush intensive-care units in two weeks
Written by Alex Moriarity