$2 trillion federal relief bill passed; Stocks see a bounceback after falling 30% since February
Top Trump Administration officials and Senators from both sides of the aisle were able to come together on March 24, 2020 and pass the proposed $2 trillion coronavirus economic rescue package that had previously been blocked twice.
“At last we have a deal,” said Senate Majority Leader Mitch McConnell. The Senate Minority Leader, Chuck Schumer, also expressed his optimisim after this historic announcement, saying, “Help is on the way, big help and quick help.”
Stock markets had started dropping from their peak back in February as news of the coronavirus outbreak began making its way through headlines, resulting in a current 30% dip in just a matter of weeks.
This dramatic plunging of stocks has been a result not only of government restrictions on certain industries (i.e. travel, restaurants, hotels, casinos, etc.), but also as a result of the unprecedented aid packages the government has started providing. Markets are swinging, as are the opinions and expectations of economic experts.
At the moment, stocks seem to be seeing some recovery. In fact, the S&P 500 rose by more than 9% yesterday – the biggest gain in a single day since 2008. This bounceback is largely a reaction to the anticipated injection federal funding into those hurting industries.
As businesses continue to shut down, and people continue to be shut in, the economy remains as volatile as ever.