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US stocks open higher as Congress reaches coronavirus agreement

Dow opens 300 points higher as US stocks extend its massive bounce after Congress reaches an agreement on $2trillion coronavirus package

  • The Dow rose more than 300 points at the opening bell on Wednesday
  • The S&P 500 opened higher at 10 points, while the Nasdaq gained three points
  • The gains came a day after the Dow soared over 11% in its best day since 1933, while the S&P 500 jumped 9.4%, recouping about $1.8 trillion in market value 
  • US stocks opened higher after Congress reached a deal overnight to inject nearly $2 trillion of aid into an economy ravaged by the coronavirus 
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US stocks have opened higher on Wall Street after Congress and the White House reached a deal overnight to inject nearly $2 trillion of aid into an economy ravaged by the coronavirus. 

The Dow rose more than 300 points at the opening bell on Wednesday. The S&P 500 opened higher at 10 points, while the Nasdaq gained three points. 

The gains came a day after the Dow soared over 11% in its best day since 1933, while the S&P 500 jumped 9.4%, recouping about $1.8 trillion in market value. 

Stocks have been falling sharply over the past month, erasing one-third of the value from some indexes, as widespread business shutdowns, travel restrictions and stay-at-home orders wreak havoc on the global economy. 

Investors say market volatility is likely to continue both up and down until the severity of the outbreak eases.  

The gains this week have been a respite from a brutal month of nearly nonstop selling. 

But with cases of the virus still climbing, investors are leery of saying markets have hit bottom. Rallies nearly as big as this have punctuated the last few weeks, none lasting more than a day.

The breakthrough on the sweeping $2 trillion measure to aid American workers, businesses and a health care system strained by the rapidly spreading coronavirus outbreak was an expected but welcome boost to sentiment.

The deal was announced shortly after midnight and follows days of often intense haggling and mounting pressure. 

It still needs to be finalized in detailed legislative language but would give direct payments to most Americans, expand unemployment benefits and provide a $367 billion program for small businesses to keep making payroll while workers are forced to stay home.  

US stocks have opened higher on Wall Street after Congress and the White House reached a deal overnight to inject nearly $2 trillion of aid into an economy ravaged by the coronavirus. The New York Stock Exchange is currently empty due to the coronavirus

US stocks have opened higher on Wall Street after Congress and the White House reached a deal overnight to inject nearly $2 trillion of aid into an economy ravaged by the coronavirus. The New York Stock Exchange is currently empty due to the coronavirus

Pressure was on Congress to act after the Federal Reserve has done nearly all it can to sustain markets.

Overnight, the Dow closed with an 11.4% gain at 20,704.91, while the more closely followed S&P 500 index, which is vital for most 401(k) accounts, leaped 9.4% to 2,447.33. The Nasdaq composite jumped 8.1%, to 7,417.86.

Ultimately, investors say they need to see the number of new infections peak before markets can find a floor. 

The increasing spread is forcing companies to park airplanes, shut hotels and close restaurants to dine-in customers.

Earlier share rebounds have quickly evaporated. Since stocks began selling off on Feb. 20, the S&P 500 has had six days where it´s risen, and all but one of them were big gains of more than 4%. 

Afterward, stocks fell an average of 5% the next day. 

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Written by Angle News

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