Market Shows Signs of Recovery as Deal Nears Completion
The U.S. economy has been heavily impacted by business closures and social distancing measures due to the ongoing pandemic. In recent weeks, the stock market has experienced significant declines, hitting lows not seen in years. However, Tuesday brought a glimmer of hope as the market showed signs of life, coinciding with the ongoing negotiations surrounding the economic stimulus package.
Despite facing obstacles over the past weekend, discussions in the U.S. Senate have persisted regarding the stimulus package aimed at injecting funds into the economy to mitigate the effects of the crisis. While a final agreement has not yet been reached, the continued dialogue has sparked optimism among investors. The Dow Jones average recorded a 1500-point increase, marking an 8% rise, while the S&P 500 and Nasdaq also saw significant jumps of 6.8% and 6.1% respectively. Companies heavily impacted by closures, such as McDonald’s and Disney, experienced a 10% surge on the back of this hopeful news.
Ensuring the well-being of workers and families is crucial in protecting our economy during this challenging time. That’s why we are prioritizing putting money into the hands of those impacted as swiftly as possible. #FamiliesFirst @SquawkStreet
— Nancy Pelosi (@SpeakerPelosi) March 24, 2020
Speaker of the House, Nancy Pelosi, expressed optimism to CNBC’s Jim Cramer that despite partisan differences between Republican and Democratic senators, she believes there is a genuine opportunity for a deal to be struck by the end of Tuesday.
Business owners are also beginning to see a light at the end of the tunnel. Galaxy Digital’s CEO, Michael Novogratz, stated to CNBC that “From a market perspective, it feels like we’re reaching the conclusion.” He added, “It doesn’t necessarily guarantee an upwards trend in the market, but the extreme volatility seems to be subsiding.”
Noting the high risk environment since February, Fundstrat analyst Tom Lee acknowledged the presence of “glimmers of hope” amidst the current market conditions.
