Dow Jumps 530 Points After Trump U-Turn

Markets are 'addicted to stimulus,' analyst says
By Newser Editors and Wire Services
Posted Oct 7, 2020 3:18 PM CDT
Dow Just Had Its Best Day Since July
Pedestrians pass the New York Stock Exchange, Friday, Oct. 2, 2020, in New York.   (AP Photo/John Minchillo)

Stocks marched higher on Wall Street Wednesday after President Trump appeared to backtrack on his decision to halt talks on another rescue effort for the economy. The S&P 500 climbed 1.7% higher in trading after Trump sent a series of tweets late Tuesday saying he’s open to sending out $1,200 payments to Americans, as well as limited programs to prop up the airline industry and small businesses, the AP reports. The Dow Jones Industrial Average closed 530 points higher, or 1.9%, to 28,303.46 in its best day since mid-July, CNBC reports.

"What we’ve seen over the last 24 hours is just confirmation that the market is really addicted to stimulus from the government," says Sal Bruno, chief investment officer at IndexIQ. "When it thinks it’s not getting it, it sells off, and when it looks like there’s a possibility for that it rises, as we’ve seen today." The Nasdaq composite climbed 1.9%, despite a call by Democratic lawmakers for Congress to rein in the Big Tech companies that dominate it and other indexes. Amazon rose 2.8%, and Apple climbed 1.8%. Google's parent company added 0.5%, and Facebook slipped 0.2%.

(More stock market stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.