Yahoo Finance Stocks - Dow Racks up Biggest Point Gain Ever on Fiscal Rescue Deal Optimism
By Yasin Ebrahim
Investing.com – The Dow racked up its biggest one-day point gain ever on Tuesday as investors bet that lawmakers on Capitol Hill will back a reported $2 trillion stimulus bill to combat economic fallout from the Covid-19 pandemic.
The Dow jumped 11.37%, or 2,1112.98 points. That was the biggest percentage gain for the blue-chip index since 1933.
TheS&P 500 gained 9.% and the Nasdaq Composite added 8.12%.
Following days of wrangling, U.S. lawmakers are reportedly closing in on a deal to roll out a coronavirus rescue package as soon as Wednesday that will deliver a much-needed fiscal boost to economy and efforts to stem the coronavirus outbreak, which has infected nearly 50,000 nationwide.
The bill could include measures to support the economy such as tax breaks, checks and bailouts for big businesses hurt by the outbreak. Measures to backstop payrolls have reportedly also been included the package as both sides of the political aisle continue negotiations.
Voting on the bill in the Senate reportedly is unlikely to take place on Tuesday night, but The White House is hopeful to have an agreement in principle by "sunset," CNBC reported.
The update arrived as President Donald Trump said he would love to have the country open and "raring to go" as soon as Easter (April 12), despite several states currently in lockdown.
The powerful rally on Wall Street was lead by energy and industrials.
Energy stocks, which have been among the hardest-hit sectors, surged 16% underpinned by a jump in oil prices.
Industrials, meanwhile, were spearheaded by a surge in Boeing (NYSE:BA), up 20%, as investors bet the aircraft maker could be set for a big cash injection.
The aircraft maker was also boosted by comments from CEO David Calhoun who said he still expects the 737 MAX, which was grounded last year, to win FAA approval and return to service in early summer, CNBC reported.
In a Fox News interview, Trump said he would not allow Boeing to plunge into bankruptcy, insisting that the aircraft maker would need a "a small amount" of money, according to reports.
Tech, meanwhile, also caught a bid, with FANG and chip stocks in favor, as investors piled into to beaten-down names like Advanced Micro Devices (NASDAQ:AMD), Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC).
Needham analyst Rajvindra Gill upgraded Nvidia to buy from hold, citing the company's superior balance sheet and robust free cash flow, sending Nvidia up 17.5%.
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