From “Dow Futures Extends Gains, Global Stocks Rally, After Senate Agrees $2 Trillion Coronavirus Relief Bill” posted early Wednesday on TheStreet:
U.S. stocks look set to rally for a second consecutive session Wednesday, following the biggest gain for Dow in nearly ninety years, after Senate lawmakers agreed a $2 trillion coronavirus relief bill that will help prop-up the hobbled domestic economy.
Senate Majority Leader Mitch McConnell said the unprecedented amount of cash — a sum many times larger than the U.S. Defense budget — would be a “wartime level of investment into our nation” after reaching an agreement with rival Democrats in the early hours of Wednesday monrnig.
If approved by both Houses of Congress later today, and then signed by President Donald Trump, the bill will provide around $500 billion in direct corporate loans and a further $500 billion in immediate cash to millions of American households.
Alongside the Federal Reserve’s extraordinary moves earlier this week, including its pledge to buy corporate bonds, roll out loan programs to small and medium-sized businesses and purchase unlimited amounts of government debt and mortgage-backed securities, the U.S. is ready to throw $6 trillion in front of the oncoming wave of coronavrius-lead damage to the domestic economy — or nearly a third of overall GDP.
“Help is on the way, big help and quick help,” said Democratic Senator Chuck Schumer.
My take: Glad the deal got cut overnight, but the market’s reaction makes me nervous. This will not be over by Easter.