Business & Investment

U.S. stocks hit new highs after Trump agreed to a $ 900 billion stimulus package

After US President Donald Trump, global stock markets rose on Monday and US stocks hit new highs. Agreed late Sign a bill to inject $ 900 billion in stimulus to the world’s largest economy.

Wall Street’s S & P 500 index rose 0.7% in the morning trading, surpassing its previous peak hit in early December. The Nasdaq Composite Index rose 0.8%.

The rise followed a sharp rise in Europe, with Germany’s Dax index rising 1.4%, surpassing February’s highs before the pandemic shook the global market. Europe’s Stoxx 600 rose 0.7% and France’s CAC 40 rose 1.1%. The London market was closed due to bank holidays.

Mr. Trump shocked many lawmakers last week when he rejected the $ 2.3 trillion bill. In addition to stimulating measures, the bill also included funding to keep the government open until the end of September next year and avoid closures scheduled to begin after midnight on Monday. ..

US Treasury Secretary Steven Mnuchin negotiated the bill with lawmakers, but Mr. Trump said At first refused Sign it to the law. The president demanded that Congress increase direct-payment checks sent to Americans from $ 600 to $ 2,000 per individual. Mr Trump said late Sunday that he was still planning to drive that increase.

Despite the delay, Goldman Sachs economists said the stimulus package was about $ 200 billion larger than expected, accounting for about 4 percent of US economic output. Banks on Wall Street are now forecasting the US economy to grow at an annual rate of 5% in the first quarter of next year, up from the previous forecast of 3%.

“The new path means a meaningfully high level of production in all four quarters, raising the annual growth rate in 2021 to 5.8%,” Goldman said.

In currencies, the pound sterling fell 0.2% against the dollar to $ 1.3516 on Monday, further away from the 2020 high of $ 1.3624, which was hit on December 17.

Investors do important work given that Brexit’s trade agreements have cleared one of the key points of currency uncertainty, but do not cover major industries such as financial services. He said it was necessary.

Christian Keller, Head of Economist Research at Barclays, said: “This is one of Brexit’s most difficult consequences, but it has the potential to establish a collaborative platform for both parties and ultimately enable improvement.

But Keller added that British banks are “cautious for the next month, as tough negotiations could have caused deep diplomatic scars on both sides of the channel.”

In Asia, the stock market has risen. China’s CSI300 rose 0.4% and Tokyo’s Topix rose 0.5%.

U.S. stocks hit new highs after Trump agreed to a $ 900 billion stimulus package U.S. stocks hit new highs after Trump agreed to a $ 900 billion stimulus package

Back to top button