· Dow jumps more than 2%, posts first back-to-back gain since February
The Dow Jones Industrial Average jumped more than 13% in two days as the White House and congressional leaders said they had agreed to a massive stimulus bill to combat the economic slowdown from the coronavirus pandemic.
The Nasdaq Composite dipped 0.5%, however, to 7,384.30 as Facebook, Amazon Apple, Netflix and Google-parent Alphabet all closed lower.
Stocks came off their highs in the final minutes of trading after Sen. Bernie Sanders said he was prepared to “put a hold on this bill until stronger conditions are imposed on the $500 billion corporate welfare fund.” At its session high, the Dow was up more than 6% while the S&P 500 gained as much as 5.1%.
The Dow soared more than 2,100 points on Tuesday, or over 11%, notching its biggest one-day percentage gain since 1933 and its best point increase ever. The S&P 500 rallied 9.4% for its best day since October 2008.
Investors looked ahead to the release of weekly jobless claims, which are expected to surge by an unprecedented amount due to the coronavirus. Economists forecast between 1 million and 4 million claims were filed last week.
Some investors believed the stock market was overdue for a big bounce, having priced in a worst-case scenario regarding the economic damage being done by coronavirus-related shutdowns. They believe a bounce could occur here even as coronavirus cases continue to surge because the market was so oversold.
· European stocks close higher as US reaches stimulus deal; Virgin Money up 26%
European markets closed higher Wednesday, as investors remained attuned to the coronavirus pandemic.
The pan-European Stoxx 600 provisionally closed up more than 2.5%, with oil and gas stocks surging over 6% to lead gains while chemicals declined by more than 0.5%.
The European blue chip index had earlier racked gains of more than 4.5% at the start of trading after U.S. senators agreed to the Trump administration’s massive economic rescue bill, unlocking $2 trillion worth of funds.
· Japan shares drop more than 4% as investors await jobless claims data stateside
Stocks in Asia declined in Thursday morning trade as investors await the release of U.S. jobless claims data expected later in the day stateside.
Shares in Japan led losses among the region’s major markets, with the Nikkei 225 falling 4.29% in morning trade while the Topix index shed 2.71%. South Korea’s Kospi also dipped 0.51% while Hong Kong’s Hang Seng index slipped 1.11%.
Mainland Chinese stocks declined in early trade, with the Shanghai composite down 0.74% and the Shenzhen composite 0.665% lower.
Meanwhile, the S&P/ASX 200 in Australia rose about 0.5%.
In Southeast Asia, the Straits Times Index in Singapore fell 2.27%. The country’s Ministry of Trade and Industry said in a Thursday statement that Singapore economy is now expected to shrink by between 1.0% and 4.0% this year. Official preliminary data showed Singapore’s economy contracting 2.2% in the first quarter from a year ago.
Overall, the MSCI Asia ex-Japan index traded 0.62% lower.
Investors will await the release of U.S. initial jobless claims data, expected to be out around 8:30 p.m. HK/SIN on Thursday, which could provide clues to the economic impact of the coronavirus pandemic.
Reference: CNBC, Reuters
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