Dow climbs 325 points as investors cheer efforts to boost global economies
by Carmen Reinicke, Business Insider US
- US stocks rose Wednesday as investors were encouraged by signs that global authorities are taking measures to boost economies.
- The European Commission on Wednesday proposed a $826 billion stimulus package intended to aid recovery from the coronavirus-induced recession.
- Oil slipped after a report from the IEA forecasting a record drop in global energy investment this year.
- Read more on Business Insider.
US stocks rose Wednesday as investors were encouraged by signs that international authorities are taking measures to boost the global economy.
Gains came as the European Commission proposed on Wednesday a $826 billion stimulus package intended to aid recovery from the coronavirus-induced recession. If enacted, it would be the largest stimulus package in European history.
In the US, the Trump administration is weighing proposals that would give cash incentives to people returning to work, top White House economic advisor Larry Kudlow said during a Tuesday interview with Fox News.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open Wednesday:
- S&P 500: 3,015.85, up 0.8%
- Dow Jones industrial average: 25,321.49, up 1.3% (326 points)
- Nasdaq composite: 9,327.93, down 0.1%
Tensions between the US and China appear to have taken a back seat as investors cheer the stimulus measures. On Sunday, the White House said it may sanction China if it enacted new security legislation in Hong Kong.
Stocks that have been roiled by the coronavirus market route gained as well. Airline stocks surged, with United, American, and Delta leading the way higher. Cruise lines also jumped, with Norwegian and Royal Caribbean among the biggest gainers.
Oil prices slipped, with West Texas Intermediate crude falling as much as 3%, to $33.31 per barrel. The International Energy Agency said in a Wednesday report that the coronavirus pandemic has sparked the largest-ever decline in global energy investment. Brent crude dipped 2.9%, to $35.12 per barrel, at intraday highs.