Elite Capital International: Heres what you should know about Stock Market last Tuesday
As Government and people continue to battle against an invincible enemy – coronavirus or covid19, the global stock market which was drastically affected by the pandemic is now gaining its pace and remarkably soaring up despite the calamity everyone is facing right now.
The Dow Jones Industrial Average, one of the three major stocks in the U.S. market gained 2,112.98 points, or 11.37%, to 20,704.91 last Tuesday, March 24, 2020. S&P 500 climbed up with 9.38% to 2,447.33 while Nasdaq with 8.12% to close at 7,487.86. The sudden change of the stock market pace is due to positive expectation on the passing of Fiscal stimulus package through the Congress.
The Fiscal Stimulus package is worth over a $1.3 trillion which aimed at helping small businesses, individuals facing layoffs, and industries greatly affected by the coronavirus pandemic.
Nancy Pelosi, House Speaker said on an interview at CNBC, “We think the bill has moved sufficiently to the side of workers.” Even Chuck Schumer, Senate minority leader express that he is hopeful that a deal will be imposed anytime soon.
Since the Congress is still impending, the Federal Reserve ‘pledges unlimited monetary policy support’ to help combat the crisis the U.S. economy is facing.
Fed said in a statement, “It has become clear that our economy will face severe disruptions… Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”
One of the actions Fed will this do one if these days is launching a three new lending facilities, including the crisis-era Term Asset-Backed Securities Lending Facility, or TALF to support consumer and business credit markets, which by the way they also did way back 2008, wherein Fed will lend money to investors to buy securities backed by credit-card loans and other consumer debt.
The move according to Fed is a positive way to keep the U.S. economy on track until the second quarter of this year.
As for Crude oil, prices are up by at least 3% this Tuesday afternoon. Crude benchmark was trading up by $0.75 (+3.21%) at $24.11 while Brent barrel is also up by $0.57 (+1.95%), at $29.86.
Closing Tuesday’s market greener than ever. For more finance news on the global economy visit us at Elite Capital International website
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