Stocks surged in volatile trading Tuesday as Wall Street cheered reports of White House coronavirus stimulus plans and new actions by the Federal Reserve to cushion the economic blow of COVID-19.
The Dow Jones Industrial Average traded 1,086 points higher, or 5.4%. The 30-stock average traded more than 200 points lower at one point and briefly surged more than 1,000 points. It also dipped below 20,000 for the first time since February 2017. The S&P 500 was up 6.1% after briefly trading lower on the day. The Nasdaq Composite gained 6.1%. It was also down earlier in the session.
Dow Jones reported, citing a White House official, that the Trump administration is weighing a fiscal stimulus package of about $1 trillion. Earlier, Treasury Secretary Steven Mnuchin told reporters the government is considering directly sending checks to Americans in the next two weeks. “Americans need cash now,” he said.
Mnuchin added corporations will be able to defer tax payments of up to $10 million while individuals could defer up to $1 million in payments to the Internal Revenue Service. Mnuchin also said President Donald Trump authorized the deferral of $300 billion in IRS payments. Sources also told CNBC that U.S. regulators are considering changes to loosen bank liquidity.
MacDailyNews Take: We live in interesting times.