Mnuchin Seeks $850 Billion in Coronavirus Stimulus -Report

Mnuchin's $850 billion stimulus proposal would likely focus on payroll tax cuts, while a Democratic plan, worth $750 billion, would target unemployment insurance, hospitals and Medicaid.

Treasury Secretary Steve Mnuchin will ask Congress for $850 billion to tackle the economic impact of the coronavirus pandemic, Politico reported Tuesday, sending Wall Street futures higher.

The 'phase 3' stimulus, which Mnuchin will bring to Senate Republicans later today, would build upon the $8.3 billion earmarked for testing and near-term support earlier this month and the multi-billion dollar package passed by the House of Representatives late last week. The $850 billion figure was also cited in a report from the Washington Post.

Democratic Senator Chuck Schumer, meanwhile, is set to unveil a $750 billion package focused on hospitals, unemployment insurance, Medicaid funding and federal loans payment forbearance.  

The Politico report followed a late Monday Tweet from President Donald Trump which suggested the U.S. government would "powerfully" support domestic industries hit by the coronavrius downturn. 

The report also added a significant bid to U.S equity futures, with contracts tied to the Dow Jones Industrial Average now suggesting a 510 point opening bell gain for the 30-stock index, which plunged nearly 3,000 points yesterday to its lowest level since April 2017.

Futures tied to the S&P 500, meanwhile, suggest a 63 point comeback for the broadest U.S. benchmark, which has fallen some 27% from its February 19 peak, losing nearly $8.3 billion in equity value in just eighteen days.