U.S. stocks surged after Congress agreed to an emergency spending bill to combat the spread of the coronavirus. Bonds continued to rally after the Federal Reserve’s rate cut.
The S&P 500 rose for the second time in three days, taking its rebound from the worst week since the financial crisis to almost 6 per cent, after Congress authorized nearly US$8 billion for virus prevention. Stocks opened higher on speculation other central banks and governments would provide stimulus as the outbreak claimed more lives and new cases piled up. Joe Biden’s surprise surge in Tuesday’s presidential primaries added to bullish sentiment. The equity benchmark is still 7 per cent below its February record.
Stocks tumbled Tuesday after the Fed’s move wasn’t followed by other Group of Seven nations with rate cuts or fiscal stimulus in the face of the virus’s growing threat to the global economy. But equities got a boost