The stock market liked what it heard out of Washington, DC, but expect the volatility to continue till it puts in the bottom.
Tuesday, The Trump Administration vowed to deliver a massive financial package designed to help both businesses and individual Americans to weather the crisis.
The Fed also stepped in to support the market for short-term borrowings. Both the fiscal and monetary moves gave a boost to the market and the DJIA rose about 1,050 points, or 5.2%.
The gains helped reverse some of the sharp losses from Monday, when a steep emergency rate cut from the Fed and an acknowledgement from President Trump that the economy could be headed for a recession only added to investors’ nervousness.
The US government ramped up its support proposals, including an $850-B package that could include $1,000 checks to American families.
European countries rolled out aid programs too, with Spain deploying $220-B, France pledged $50-B in aid for small businesses.
Treasury Secretary Steven Mnuchin says the financial markets will stay open for people to access their money during the coronavirus outbreak.
He said at a White House briefing Tuesday that shorter hours may still be necessary. But he says banks and other institutions will not shut down as the US struggles with the pandemic.
Included in whatever economic bailout package comes forward will be substantial financial aid for the airline industry.
The White House Tuesday asked Congress to approve a massive emergency rescue package to help businesses as well as taxpayers with cheap money, expect that to happen.
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