October 07, 2020 at 06:02PM
U.S. stocks rose on Wednesday after President Donald Trump tweeted support for aid to airlines and other stimulus measures, stoking hope that a smaller aid package could be passed by lawmakers. The Dow Jones Industrial Average traded 418 points higher, or 1.5%. The S&P 500 climbed 1.3%, while the Nasdaq Composite advanced 1.4%.
Trump urged Congress to approve airline payroll support, saying that money and aid for small business could be paid for with unused funds from the previous stimulus. Trump also pushed for another round of $1,200 stimulus checks for Americans. Shares of United Airlines gained more than 3%. Delta gained 2.5%. Airline stocks also got a boost after a JPMorgan analyst upgraded several companies in the industry. Boeing shares were up 2.9%.
The major averages closed sharply lower on Tuesday after Trump tweeted the White House is halting talks with Democrats about a second coronavirus stimulus deal. Earlier in the session, stocks rallied in hopes that there would be a second relief package to prop up markets as the coronavirus outbreak continues.
Federal Reserve Chairman Jerome Powell said Tuesday the economy needs more aggressive fiscal and monetary stimulus for an economic recovery that he said still has “a long way to go.” “Chairman Powell has said that we need more stimulus, and this is going against the advice of the chairman of the Federal Reserve and the markets don’t really like going against the advice of the chairman of the Federal Reserve,” said Tom Block, Washington policy strategist for Fundstrat. “I would not say it’s over for good but I would say it’s a very negative sign and likely pushes it until after the election.”
Stocks rally, with the Dow up 400 points as Trump urges airline aid, CNBC, Oct 7
From: The FxPro News Team https://fxpro.news/daily-forex-outlook/stocks-rally-with-the-dow-up-400-points-as-trump-urges-airline-aid-20201007/
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