Last Updated Wednesday, March 25, 2020 5:15AM EDTBANGKOK -- Japan's Nikkei 225 surged 8% and other world markets also jumped Wednesday after Congress and the White House reached a deal to inject nearly $2 trillion of aid into an economy ravaged by the coronavirus.
U.S. futures turned higher after U.S. lawmakers said they had bridged their differences over the stimulus package. The future for the Dow rose 1.7% to 20,960.00 and the contract for the S&P 500 picked up 0.7% to 2,454.60. The deal was announced shortly after midnight and follows days of often intense haggling and mounting pressure. It still needs to be finalized in detailed legislative language, but would give direct payments to most Americans, expand unemployment benefits and provide a $367 billion program for small businesses to keep making payroll while workers are forced to stay home.
Overnight, the Dow closed at 20,704.91, while the more closely followed S&P 500 index, which is vital for most 401 accounts, leaped 9.4% to 2,447.33. The Nasdaq composite jumped 8.1%, to 7,417.86. The VIX index, a proxy for equity market volatility, remains relatively high, "suggesting that underlying risk sentiment may stay cautious as investors remain wary on the pace of the infection spread, with total confirmed Covid-19 cases exceeding 400,000 globally," Mizuho Bank said in a commentary.
For most people, the coronavirus causes only mild or moderate symptoms, such as fever and cough. Those with mild illness recover in about two weeks. Severe illness including pneumonia can occur, especially in the elderly and people with existing health problems. Recovery could take six weeks in such cases.
It's temporary speculation hype. When the U.S. Covid infection hits 800,000 on April 7 the stock market will be 16000
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