As COVID-19 reshapes our economy, our newsletter will help you unpack the news from the day.
Market reactions to COVID-19: Stocks rise after Fed announces $2.3 trillion in loans
This post was updated April 9 at 8:48 p.m. Eastern time. Check back throughout the week for more market updates.
The major stock indexes rose following the Federal Reserve’s announcement that it will provide an additional $2.3 trillion in loans to support households, businesses and local governments.
At the end of trading Thursday, the Dow Jones Industrial Average had climbed more than 285 points, the S&P 500 more than 39 points and the Nasdaq composite index more than 62 points.
Federal Reserve Chairman Jerome Powell said the Fed’s role is to “provide as much relief and stability as we can during this period of constrained economic activity.”
On Wednesday, stocks surged following Sen. Bernie Sanders’ announcement that he would drop out of the presidential race, which left former Vice President Joe Biden as the presumptive Democratic nominee. More than two-thirds of investors viewed Biden as the most stock-market friendly Democratic candidate, according to a 2019 RBC survey of U.S. equity investors. Sanders’ platform included Medicare for All, a wealth tax and Wall Street reform, which would involve breaking up the big banks.
White House health adviser Dr. Anthony Fauci also said the U.S. is seeing “glimmers of hope” in regard to the COVID-19 pandemic, with deaths lagging behind the number of new cases and hospitalizations.
In a roller-coaster week, the major stock indexes closed lower on Tuesday, with the Dow climbing 900 points before flatlining in the last hour of the session.
The spread of COVID-19 has shaken financial markets and led to layoffs across the country. There are now more than 1.4 million confirmed cases of the virus worldwide, and more than 85,700 people have died, according to the World Health Organization. In the United States and U.S. territories, the number of confirmed cases has exceeded 455,000, while the death toll has risen to more than 16,300.
Here’s a look at how the major stock indexes have been reacting to the news since the beginning of the year:
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