Stocks surge again after relief bill passes Senate; indexes up 6%

Marco Green
March 28, 2020

United States stocks plunged again Thursday, spoiling a historic three-day rally as the rampant spread of the coronavirus in the USA rattled Wall Street. It's expected to pass and be sent to President Donald Trump's desk to be signed into law.

The early Friday selloff came after the Dow soared nearly 4,000 points in the prior three trading days - its biggest three-day jump since 1931.

"We're not out of the woods yet on the health or economic crisis", said Eddie Perkin, chief equity investment officer at Eaton Vance in Boston. "If there is a major acceleration over the weekend of coronavirus cases in NY and other states and the hospital system continues to get jammed up, then I think it will be a rough week for the market".

A record 3 million surge in USA weekly jobless claims offered the first glimpse of the extent of the economic hit from the outbreak.

At the closing bell, the Dow Jones Industrial Average stood at 21,612.93, down 4.1 per cent or around 930 points.

Almost 3.3 million Americans applied for unemployment benefits last week, shattering the prior record set in 1982.

The Nasdaq Composite dropped 3.79% to 7,502.38.

Volume on USA exchanges was 13.4 billion shares, its lowest since March 5, according to Refinitiv data.

Boeing shed 10% after gaining as much as 90% this week, as Mnuchin said the planemaker had no intention of participating in the package.

The banking index fell 4.6%, tracking U.S. Treasury yields as investors sought safety in high-quality assets.

Despite a jittery start to the week, all three major indexes have jumped between 13.3 per cent and 17.6 per cent so far after unprecedented policy easing by the U.S. Federal Reserve and hopes of a US$2.2 trillion government stimulus aid bill.

Declining issues outnumbered advancing ones on the NYSE by a 3.17-to-1 ratio; on Nasdaq, a 2.98-to-1 ratio favored decliners.

The S&P index recorded no new 52-week high and one new low, while the Nasdaq recorded four new highs and 19 new lows.

Other reports by Click Lancashire

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