Dow Rebounds Ahead of Democrats’ Stimulus Deadline
Treasury Secretary Steven Mnuchin has reportedly bridged the gap on some policy issues with House Speaker Nancy Pelosi ahead of her self-imposed stimulus deadline. Pelosi says Tuesday is the last chance for both sides to pass new legislation before the Nov. 3 election. | Image: MANDEL NGAN / AFP
- The Dow Jones Industrial Average rose by as much as 185 points on Tuesday.
- House Speaker Nancy Pelosi says a deal must be reached on Tuesday if lawmakers hope to pass new stimulus before the election.
- A lack of stimulus progress contributed to a sharp selloff in stock prices on Monday, as the Dow plunged 410 points.
The Dow and broader U.S. stock market traded higher on Tuesday, as investors gauged the likelihood of a stimulus breakthrough hours before a self-imposed deadline.
Dow, S&P 500, Nasdaq Rise
All of Wall Street’s major indexes traded higher after the open, mirroring a positive pre-market for stock futures . The Dow Jones Industrial Average rose by as much as 185 points.
The broad S&P 500 Index of large-cap stocks rose 0.6%, while the Nasdaq Composite Index gained 0.5%.
All 11 primary sectors tracked by the S&P 500 Index were in the green. Energy stocks were the top performers, followed closely by financials and industrials.
Equities plunged on Monday due to a combination of political turbulence and lack of stimulus breakthrough in Congress. The CBOE Volatility Index –a measure of investor anxiety–peaked near 30 on a scale of 1-100, where 20 represents the historical average.
Democrats’ Stimulus Deadline Nears
Congress has until the end of Tuesday to reach a new fiscal stimulus agreement before the election. The self-imposed deadline was put in place on Sunday by House Speaker Nancy Pelosi, who gave Republicans one final opportunity to return to the negotiating table.
In an interview with ABC’s “This Week,” Pelosi said the deadline “only relates to if we want to get it done before the election, which we do.” Watch the video below for more:
As The Wall Street Journal reports, Pelosi and Treasury Secretary Steven Mnuchin have bridged the gap on some policy differences holding up a new stimulus deal, but several outstanding issues remain.
Republicans are also at odds about the size and scope of fiscal relief. President Trump supports a $1.8 trillion aid package, a figure Senate Majority Leader Mitch McConnell says is a non-starter . For the Democrats, the goalpost is $2.2 trillion.
McConnell said Saturday that Pelosi was blocking a bipartisan agreement that would provide aid directly to Americans :
If Speaker Pelosi ever lets the House reach a bipartisan agreement with the administration, the Senate would of course consider it. But Americans need help now.
