Wall Street wins before Senate vote on $ 2 trillion aid package

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(Reuters) – Wall Street rose in jerky trading on Wednesday, building on gains from the previous session, as the US Senate neared a vote to clear a $ 2 trillion package to support businesses and households affected by the coronavirus pandemic.
Hopes for stimulus, which followed aggressive Federal Reserve cash flows, helped the Dow Jones .DJI index post its biggest intraday percentage jump since 1933 on Tuesday.

After switching at the start of the session, the benchmark added 5%, boosted by a 30.4% jump by Boeing Co (TO PROHIBIT), according to sources, the aircraft manufacturer could resume production of the 737 MAX by May, which would build up the stock for its best day since 1981.

After losing nearly three-quarters of its value since mid-February, the aircraft manufacturer, once a symbol of American manufacturing strength, has gained in the past three days as governments reflect on the bailout of the industry aerospace, which is facing a collapse in demand.

But with fears of a global recession and corporate defaults high amid a disruption in business activity, traders have said that one of the biggest routs on Wall Street would not end without evidence of a spike in new cases of coronavirus.

“This market is still facing the challenges of the coronavirus and its economic benefits, so there will necessarily be false starts, retracements and tests,” said Rick Swope, director at E * TRADE Financial Corp in Suwanee, Georgia.

A 9% rise in the S&P 500 .SPX benchmark had helped it recover about $ 1.8 trillion in market value on Tuesday in wild swings last seen at the height of the global financial crisis. .

The CBOE volatility index, although down from last year’s 12-year highs, is still at levels well above those of 2018 and 2019.

“There is a lack of fundamental data that we rely on as equity investors to determine what prices should be,” said Sean O’Hara, president of Pacer ETFs, a division of Pacer Financial.

“The data we don’t have is what the impact will be on GDP, on income and how many people will end up losing their jobs. ”

Data expected on Thursday is expected to show that weekly jobless claims in the United States will reach one million, with companies announcing statewide layoffs and closings forcing companies to close stores.

At 1:01 p.m. ET the Dow Jones Industrial Average .DJI was up 911.00 points, or 4.40%, to 21,615.91, the S&P 500 .SPX was up 69.39 points, or 2.84%, at 2,516.72 and the Nasdaq Composite .IXIC was up 94.71 points, or 1.28%, to 7,512.57.

.SPLRCI industrial stocks, led by Boeing, were the biggest boost to the S&P 500, which is still down about $ 8 trillion in value since its mid-February high.

Delta Airlines (DAL.N), Royal Caribbean Cruises (RCL.N) and Norwegian Cruise Line Holdings (NCLH.N), among the hardest hit by the coronavirus pandemic, jumped from 18% to 24%.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, the United States, on March 20, 2020. REUTERS / Lucas Jackson

There were more problems advanced than declines 6 to 1 on the NYSE and 2 to 1 on the Nasdaq.

The S&P Index recorded no new 52-week high and four new lows, while the Nasdaq recorded three new highs and 41 new lows.

Report by Uday Sampath and Medha Singh in Bengaluru; Editing by Sagarika Jaisinghani and Arun Koyyur

Our standards:Principles of the Thomson Reuters Trust.

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