U.S. stocks soared Tuesday, as the Federal Reserve’s stimulus measures are beginning to work through the financial markets, if not the real economy.
The Nasdaq rose more than 7%, with the S&P 500 and Dow Jones Industrial Average up more than 8% and 9%, respectively.
This came as many on Wall Street are beginning to see evidence in the bond market that the Fed’s stimulus is beginning to hold over households and businesses hunger for near-term liquidity, as the Coronavirus essentially wipes out spending from the economy.
Previously, many had said the Fed’s actions won’t boost investment or spending until the virus ends, which is still largely true. Now, some parties in the economy need to be held over.
Still, the containment of the virus is the most ingredient to economic growth and the stock market. Monday was the second consecutive day congress could not agree on terms over a $2 trillion fiscal spending bill that would provide heavy virus relief.
The White ouse also said it would like people to go back to work and for the economy to run again in two weeks, a threat to the containment of the virus and therefore a threat to the economy.
Democratic House Speaker Nancy Pelosi spoke Tuesday and did not allude to much progress on the bill.
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