Dow climbs 350 points as investors cheer efforts to boost global economies
- US stocks rose on Wednesday as investors were encouraged by signs that global authorities were taking measures to boost economies.
- The European Commission proposed an $826 billion stimulus package intended to aid recovery from the coronavirus-induced recession.
- Oil slipped after an IEA report forecast a record drop in global energy investment this year.
- Read more on Business Insider.
US stocks rose on Wednesday as investors were encouraged by signs that international authorities were taking measures to boost the global economy.
In the last hour of trading, all three major US indexes gained, erasing earlier losses that briefy sent the Nasdaq into negative territory as investors ditched "stay at home" tech stocks. Micron gained as much as 7.4% after boosting its sales guidance by more than analysts expected, leading chipmakers and the entire tech sector higher.
The European Commission early Wednesday proposed an $826 billion stimulus package intended to aid recovery from the coronavirus-induced recession. If enacted, it would be the largest stimulus package in European history.
In the US, the Trump administration is weighing proposals that would give cash incentives to people returning to work, the White House economic adviser Larry Kudlow said during a Tuesday interview with Fox News
Here's where US indexes stood at 3:20 p.m. ET on Wednesday:
- S&P 500: 3,030.45, up 0.96%
- Dow Jones industrial average: 25,363.11, up 1.47% (368 points)
- Nasdaq composite: 9,377.89, up 0.40%
Tensions between the US and China appear to have taken a back seat as investors cheered the stimulus measures. On Sunday, the White House said it may sanction China if it enacted new security legislation in Hong Kong.
Stocks that have been roiled by the coronavirus market rout jumped as well. Airline stocks surged, with United, American, and Delta leading the way higher before paring gains later in the day. Cruise lines also jumped, with Norwegian and Royal Caribbean among the biggest gainers.
Oil prices slipped, with West Texas Intermediate crude falling as much as 3%, to $33.31 per barrel. The International Energy Agency forecast in a Wednesday report that the coronavirus pandemic would spark the largest decline in global energy investment. Brent crude dipped 2.9%, to $35.12 per barrel, at intraday highs.