(Reuters) – Wall Street bounced from three-year lows on Tuesday on hopes of a major fiscal stimulus to blunt the economic damage from the coronavirus pandemic, while Boeing surged on signs that its grounded jet could fly by the middle of the year.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 20, 2020. REUTERS/Lucas Jackson
All three main U.S. stock indexes jumped more than 5%, bouncing back from a brutal selloff in the previous session on fears of a deep global recession as entire nations shut down to prevent the virus from spreading.
The S&P 500 .SPX has lost more than $9 trillion in value from its mid February record high, while the Dow Jones .DJI erased over three years of gains in one month.
Hopes are now running high of the U.S. Senate passing a $2 trillion stimulus bill, aimed at providing financial aid to Americans out of work and help distressed industries.
“Fiscal stimulus is absolutely necessary because it directly effects the consumer and consumer spending and consumer confidence is what’s driving the U.S. economy,” said Nancy Perez, senior portfolio manager at Bosto