Markets Post Huge Rebound
CBJ — Tuesday proved to be a great day for the North American stock markets. All the majors skyrocketed thanks to the improved confidence on the (virtual) trading floor. Investors were given a jolt of optimism after hearing new updates from the U.S. government on initiatives to battle the COVID-19 pandemic, including a massive government stimulus package and also some encouraging date from Italy regarding the novel coronavirus outbreak.
The S&P/TSX composite index closed up 1,343 points at 12,571 — representing a 12% gain.
In New York, the Dow Jones industrial average enjoyed its largest daily gain since 1933 by rising 2,113 points or 11.3% at 20,705. The S&P 500 index was up 210 points at 2,447.
The much-needed rebound came after several very volatile days of trading that had seen the TSX lose about 40% of its value since posting record highs just over a month ago.
After two failed attempts to reach a US$2 trillion stimulus package due to ongoing partisan bickering between Republicans and Democrats, it appears the U.S. Congress is finally concentrating on what is most important — reaching an agreement and helping its citizens, many of whom are now not earning any money having been forced out of their work places. Meanwhile, the Federal Reserve has cut interest rates a number of times as part of a stimulus plan.
The Canadian dollar continues to languish in and around 69 cents U.S.
West Texas Intermediate oil is selling for $24.62 a barrel while Brent crude is going for $29.74.