Stocks rise as Trump tweets on stimulus keep market spinning
Stocks closed broadly higher Wednesday on Wall Street after President Trump appeared to backtrack on his decision to halt talks on another rescue effort for the economy.
The Standard & Poor’s 500 index climbed 1.7% after Trump sent a series of tweets late Tuesday saying he’s open to sending out $1,200 payments to Americans, as well as limited programs to prop up the airline industry and small businesses.
The tweets came just hours after Trump sent the market into a sudden tailspin with his declaration that his representatives should halt talks with Democrats on a broad stimulus effort for the economy until after the election, saying House Speaker Nancy Pelosi had been negotiating in bad faith. The stakes are high, as economists, investors and the chairman of the Federal Reserve all say the economy needs another dose of support after the expiration of weekly jobless benefits and other stimulus Congress approved earlier this year.
The S&P 500 index rose 58.50 points to 3,419.45, while the Dow Jones industrial average gained 530.70 points, or 1.9%, to 28,303.46.
The Nasdaq composite climbed 210 points, or 1.9%, to 11,364.60 despite a call by Democratic lawmakers for Congress to rein in the Big Tech companies that dominate it and other indexes. The proposal, which follows a 15-month investigation by a House Judiciary Committee panel, could make it harder for Amazon, Apple, Facebook and Google’s parent company, Alphabet, to acquire others and could impose new rules to safeguard competition.
Amazon rose 3.1%, and Apple climbed 1.7%. Alphabet added 0.6% and Facebook slipped 0.2%.
Airlines jumped to some of the day’s bigger gains after Trump singled out the industry, asking Congress to “IMMEDIATELY” approve $25 billion for them. Last week, Pelosi had told airline executives to halt the furloughs of tens of thousands of workers with the promise that aid for them was imminent, though a proposal by House Democrats to give the airline industry $28.8 billion failed to advance.
United Airlines Holdings and American Airlines Group climbed 4.3%. Delta Air Lines pulled 3.5% higher.
Smaller stocks rose more than the rest of the market, an indication of rising optimism about the economy’s prospects. The Russell 2000 index of small-cap stocks climbed 33.75 points, or 2.1%, to 1,611.04.
The yield on the 10-year Treasury rose to 0.78% from 0.76% late Tuesday. European and Asian markets ended mixed.