Stocks continue higher after government officials agree on a $2 trillion stimulus package.
The Dow and broader U.S. stock market rallied on Wednesday, as investors cheered a $2 trillion stimulus package designed to help the economy rebound from coronavirus.
Two of three major U.S. indices finished in positive territory, building off Tuesday’s record-breaking session. The Dow Jones Industrial Average (DIA) rallied 495.64 points, or 2.4%, to 21,200.55. The blue-chip index surged more than 2,100 points on Tuesday.
The broad S&P 500 Index (SPY) of large-cap stocks gained 1.2% to 2,475.56. All 11 primary sectors reported gains, with industrials leading the pack. Energy and financials stocks also outperformed the benchmark index.
Surging technology stocks failed to push the Nasdaq Composite Index (QQQ) higher on Wednesday. The technology-heavy average finished down 0.5% at 7,384.29.
A measure of 30-day volatility known as the CBOE VIX (VXX) traded in a more neutral range on Wednesday, but remained well above the historic mean. The so-called “investor fear index” reached an intraday low of 58.03 on a scale of 1-100 where 20 represents the historic average. VIX would eventually settle up 6.9% at 65.94.
Markets rallied Wednesday after lawmakers and the Trump administration finalized a $2 trillion stimulus package designed to help the U.S. economy rebound from the coronavirus pandemic.
The novel disease has established a strong foothold in the country, with more than 62,000 people affected. Globally, the number is nearly 460,000. More than 20,800 people have died.
The Final Word: Wednesday marked the first back-to-back rally for U.S. stocks since February. Volatility remains well above anything we’ve seen since the financial crisis – casting a dark cloud over the sustainability of the rally.