A volatile start to the trading day on Wednesday as investors worry the economic jolt from $2 trillion stimulus plan agreed to in the U.S. Senate won’t be enough to stop a sharp recession as the coronavirus outbreak closes down Main Street.
Investors are hoping for Wall Street’s first back-to-back gains in more than a month, one day after the Dow’s biggest daily surge since the 1930s.
There is hope the economic stimulus package will at least soften the blow for industries who stand to benefit.
Airlines, one of the hardest hit by the pandemic, were at the top of the winners list in Wednesday trading.
Shares of major U.S. air carriers such as American Airlines, Delta and United rose sharply.
Hotels also traded on the upside.
Now that the massive U.S. stimulus package has been agreed to in the Senate, the question on Wall Street is on timing: how long will it take to reconcile the House and Senate versions and get it on the desk of the president to sign?
How soon can small and mid-sized businesses who are forced to layoff workers access the $350 billion set aside in the Senate version?
And how quickly will the planned direct payments of up to $3,000 to millions of U.S. families make it to consumers’ bank accounts?
But investors fear time is running out.
The coronavirus continues to spread throughout the U.S., forcing state governments to order nearly a third of the population to stay at home, resulting in thousands of businesses being closed, and throwing millions of Americans out of work.
Market watchers warn investors should brace for more volatile Wall Street swings until the number of coronavirus cases peak....Health experts say that could be weeks, if not months away.