Market Watch: Markets Rally Awaiting Stimulus Plan
The stock market saw a massive surge on Tuesday, as political factors intervened, creating a financial plan to invigorate the stock market. The Dow Jones Industrial Average is up 2,000 points as markets await the settlement of the $2 trillion stimulus bill in Washington. It was an intense day on Wall Street, as all three averages saw a massive gain. The Dow is up 11%, S&P surged by 9%, and NASDAQ saw increases of about 8%. NBC news reported that the bill is said to include $200-$400 billion to small business and healthcare relief, $75 billion would be allocated to hospitals, $11 billion for vaccines, and $4.5 billion allocated to the CDC. Those unemployed due to the outbreak would receive 100 percent of their salary and benefits.
Priorities are shifting, and some economists believe the country must do what it can to flatten the curve without descending into an economic collapse.
The banking system is combining all resources to recover; the Federal Reserve announced Monday an enormous development of its efforts to keep businesses open and rehabilitate the markets. These ventures were expensive and beyond what most Americans expected. The Federal Reserve will purchase unlimited bonds in an attempt to keep money flowing to individuals, companies, and cities. They will buy US treasury bonds and mortgage-backed securities in fear of the looming recession.
The Federal Reserve is no stranger to buying back United States debt, and their actions during the coronavirus epidemic likely exceed those of 2008 when they dumped almost $4 trillion to offset damages. These efforts failed to alleviate fear in the market; the actions in Washington implementing fiscal policy adjustments is the factor that regained trader confidence.
In the COVED-19 economy, investors need to put their money in the right places in hopes of recovery. Warren Buffett, one of the most successful investors in the world, once said, “Be fearful when others are greedy, and be greedy only when others are fearful.”
Investors who focus on their long term returns will save by buying stock when great businesses have a bargain price. Discount retailers see a surge in demand, along with e-commerce and payment processing facilitators.
Coronavirus hot stocks as of Monday, March 23:
Teladoc (NYSE:TDOC) up 17.77%
Zoom Video Communications (NASDAQ: ZM) up 22.22%,
Live Person (NASDAQ: LSPN) up 9.76%
Netflix(NASDAQ:NFLX) up 8.26%
Peloton Interactive Corp (NASDAQ: PTON) up 1.43%.
There are many things the United States must do to rescue itself as a nation. Priorities are shifting, and some economists believe that the country must do what it can to flatten the curve without descending into an economic collapse.