NEW YORK – Stocks are widening on Wall Street after the Senate passed a $ 2.2 trillion bill to provide economic relief for the damage caused by the coronavirus outbreak. Major indexes rose more than 2% in early trading on Thursday, following their first consecutive gains since a dramatic selloff gripped the markets five weeks ago. Investors were relieved that a massive increase in jobless claims, despite breaking records at 3.3 million, fell short of the worst forecasts. The outbreak happened so suddenly that the unemployment report is one of the first data points showing how much economic pain it is creating.
This is a breaking news update. The previous AP story is below:
Global stocks and US futures USA They declined Thursday after the US Senate. USA It approved a proposed $ 2.2 trillion virus aid package after a delay in its details and sent the measure to the House of Representatives.
After two days of big gains, the indices in London and Frankfurt opened almost 2%, while Tokyo lost 4.5%. Shanghai and Hong Kong also declined.
On Wall Street, the future of the S,amp;P 500 index lost 1.1% after the Senate approved aid on Wednesday night to mitigate the impact of business closings due to the coronavirus that has killed more than 21,000 people worldwide. . The measure goes to the House, which is expected to pass it on Friday.
"Investors now have to judge whether tremendous political support is enough to meet worsening economic conditions," said Stephen Innes of AxiCorp. in a report
The future for the Dow Jones Industrial Average was 0.7% lower before a government report on Thursday that forecasters expect to show a record number of Americans applying for unemployment benefits after a wave of layoffs. The S,amp;P 500 rose 1.2% on Wednesday but was down nearly 27% from its high a month ago.
The Senate vote was delayed by arguments over whether the measure does too much or too little for businesses, workers and healthcare systems. Forecasters say a recession seems increasingly inevitable.
The delay "causes a wait-and-see tone for the markets," IG's Jingyi Pan said in a report released before the Senate's approval.
In Europe, the London FTSE 100 lost 1.5% to 5,601 and the Frankfurt DAX lost 2% to 9,675. The CAC 40 in France fell 1.9% to 4,349.
In Asia, the Nikkei 225 in Tokyo declined to 18,664.60 while Hang Seng of Hong Kong dropped 0.7% to 23,352.34. The Shanghai Composite Index decreased 0.6% to 2,764.91. The Kospi in Seoul lost 1.1% to 1,686.24 while the S & P-ASX 200 in Sydney added 2.3% to 5,113.30. India's Sensex gained 3% to 29,407.25.
Singapore's benchmark index lost 1% after a government forecast the economy would shrink 10.6% in the current quarter compared to the three months ending in December. Singapore is preparing its second stimulus package as more companies are informed and controls on public activity are closed.
Global share prices have skyrocketed as business closings spread across the globe. Investors say they need to see a decline in the number of new coronavirus infections before prices can hit bottom.
Many traders have "returned to the 2008 case study," when markets saw several 5% spikes during the global financial crisis before hitting bottom in March 2009, Pepperstone's Chris Weston said in a report.
An early Wednesday rally on Wall Street faded when disagreements over its details blocked a vote in Congress.
Republican Senators Tim Scott, Ben Sasse and Lindsey Graham demanded changes to ensure that laid-off workers do not receive more money than they received while working. Senator Bernie Sanders said he would block the bill unless conservatives withdrew their objections.
Even optimists say the package provides only the second of three tranches that markets need to regain lasting confidence.
World central banks have already lowered interest rates and injected money into financial markets.
Investors are waiting to see the details of Washington's plan. It includes direct payments to most Americans and help for the most affected industries.
The number of known infections has exceeded 450,000 people worldwide, according to Johns Hopkins University. In total, more than 112,000 have been recovered.
For most people, the new coronavirus causes mild or moderate symptoms, such as fever and cough, that disappear within two to three weeks. For some, especially older adults and people with existing health problems, it can cause more serious illnesses, such as pneumonia and death.
In the energy markets, US benchmark crude lost 57 cents at $ 23.92 a barrel in e-commerce on the New York Mercantile Exchange. The contract rose 48 cents on Wednesday to close at $ 24.49. Brent crude, used to price international oils, fell 37 cents to $ 29.62 a barrel in London. It rose 24 cents the previous session to $ 29.99 a barrel.
The dollar fell to 109.69 yen from 111.20 on Wednesday. The euro gained at $ 1.0966 from $ 1.0880.