The US markets has a good day – with the Dow making the biggest percentage rise since 1932, at more than 11%, in a bear market bounce. Expect more volatility ahead.
The USS&P 500 futures is also higher:
However the volatility index is still in extended territory:
The Trump administration and Senate Democrats closed in on a nearly $2 trillion stimulus plan and economic rescue package after days of tense negotiations.
Wall Street found reprieve from a month of crashing stocks and financial panic after Treasury Secretary Steven Mnuchin and Senate Minority Leader Charles Schumer (D-N.Y.) announced early Tuesday morning that they expected to clinch a stimulus deal.
Negotiations between Mnuchin and Schumer continued throughout Tuesday as details about the stimulus plan emerged. Schumer said Tuesday that the federal government will pay the full salaries of furloughed workers for up to four months under the emerging stimulus deal, which may get a vote as soon as Tuesday.
The Senate bill will also provide about $500 billion to the Treasury Department to backstop Federal Reserve loans to industries facing a liquidity shortage because of a loss of business related to the coronavirus crisis.
