Dow Jumps Nearly 300 Points After Trump Signs $484 Billion Coronavirus Relief Bill

TOPLINE  The market rose for a third straight day as stocks got a lift from rebounding oil prices and news that President Trump signed the most recent coronavirus stimulus bill into law earlier today.






KEY FACTS


  • The Dow Jones industrial average was up 1.1%, over 250 points, on Friday, while the S&P 500 rose 1.4% and also the Nasdaq Composite 1.7%.
  • Oil prices also continued to rebound: WTI oil futures have stabilized since their unprecedented selloff earlier on, rising over 20% on Thursday and almost 4% on Friday.
  • Stocks got a lift after the House of Representatives on Thursday night passed a $484 billion coronavirus relief bill to replenish funds for emergency small business lending programs, national coronavirus testing, and hospitals.
  • The bill, which passed the Senate on Tuesday evening, was signed by President Trump into law on Friday.




  • As a part of this latest relief package, $310 billion in new funds are going to be allocated for the Paycheck Protection Program, which supplies loans to struggling small businesses but ran out of funding over per week ago.
  • Although Congress has now passed four stimulus bills to assist contain the economic damage from coronavirus, “its work isn’t finished yet”—state and native governments still require funding or they'll be “forced to enact growth-crushing spending cuts,” says Vital Knowledge founder Adam Crisafulli.


CRUCIAL QUOTE
“Near-term growth and earnings trends are awful,” admits Crisafulli. But there also remains an honest deal of bullish sentiment: “Investors increasingly are dismissing not just Q1 but 2020 entirely, as they specialize in 2021 when conditions will presumably be more ‘normal.’”

SURPRISING FACT
So far in 2020, “Fridays are the worst day for the market, with a median decline of 0.82% and gains barely even 25% of the time,” per Bespoke Investment Group. The market has been able to buck that trend recently, however, notching gains for the last two Fridays in a very row.

CRUCIAL STATISTIC
Stocks are still on pace to post losses on, with the Dow down 2.5%, the S&P 500 over 1%. Despite this week’s volatility, the market remains up nearly 15% in April and remains wealthy its crisis-level lows in late March.

KEY BACKGROUND
The market pared back a number of its gains, ending slightly higher, on Thursday, amid clashing reports a few recent Gilead Sciences trials for its remdesivir drug. per an initial report from The Financial Times, citing documents accidentally published by the WHO, Gilead’s highly anticipated antiviral agent remdesivir yielded disappointing results during its first trial in China. Gilead was quick to reply and differ with the report, saying that “because this study was terminated early thanks to low enrollment . . . the study results are inconclusive.” the corporate also highlighted, however, that “trends within the data suggest a possible benefit for remdesivir, especially among patients treated early in the disease.”

WHAT to look at FOR

“Probably over anything (earnings, reopening, eco data, stimulus, etc.), the explore for a good COVID treatment is dominating the macro narrative,” describes Crisafulli. “Remdesivir specifically has captured the hearts and minds of investors everywhere. . . . However, the market has to dramatically curb its enthusiasm when it involves finding a “cure,” he says. “Just because the claims around hydroxychloroquine appear to own been overhyped, it’s unlikely Remdesivir will exhibit overwhelming efficacy either.”