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Dow Jones Industrial Average Gains for Second Week as Stimulus, Covid Captivate

Dow Jones Industrial Average Gains for Second Week as Stimulus, Covid Captivate

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If the Democrats sweep, they might seek to pass the original $3.4 trillion Heroes Act that cleared the House in May.


ANGELA WEISS/AFP/Getty Images

Sometimes the “why” is less important than the “what.” And that’s particularly true for investors right now.

Try explaining this: The

Dow Jones Industrial Average

advanced 904.09 points, or 3.3%, to 28,586.90 this past week, its second consecutive weekly gain, while the

S&P 500 index

rose 3.8%, to 3477.13, and the

Nasdaq Composite

gained 4.6%, to 11,579.94. Even more shocking, the small-company

Russell 2000

index climbed 6.4%, to 1637.55.

A possible stimulus package got much of the credit—and attention—this week, and there’s no doubt that the market would love to see a bill get passed. The Federal Reserve would too, as Fed Chairman Jerome Powell continued to call for the government to act sooner rather than later. But if it was all about stimulus, we suspect that the swings to the downside would have been larger when President Donald Trump said he was calling off negotiations, and the market wouldn’t simply have shrugged off every other misstep along the way.

Another possibility for the rapidly rising market: It’s looking ahead to a Blue Wave, which would see not only Joe Biden win the election, but Democrats hold the House of Representatives and take the Senate too. In that case, the stimulus might be even larger than a package now would be.

Jefferies economist Aneta Markowska, for instance, removed a stimulus package from her 2020 forecast two weeks ago and still doesn’t expect it to become law this year. She does, however, suspect that if the Democrats sweep, they will seek to pass the original

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Dow rises 161 points as economic-stimulus talks show progress

Dow rises 161 points as economic-stimulus talks show progress



a man standing in front of a computer: Xinhua/Wang Ying/ Getty Images


© Xinhua/Wang Ying/ Getty Images
Xinhua/Wang Ying/ Getty Images

  • US stocks moved higher Friday on continued hope that negotiations on fiscal stimulus will lead to a deal before the election.
  • House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued negotiations, trying to find middle ground on the size and scope of a new deal.
  • President Donald Trump this week reversed his stance on a stimulus deal and said he now favors a large deal.
  • “Covid Relief Negotiations are moving along,” Trump tweeted on Friday. “Go Big!”
  • Watch major indexes update live here.

US stocks moved higher on Friday as negotiations continued on another round of fiscal stimulus to combat the economic decline caused by the COVID-19 pandemic.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin had been trying to make a deal before the November election, but President Donald Trump said earlier this week that negotiations were over.

Fast-forward to Friday, and the talks are back on.

“Covid Relief Negotiations are moving along,” Trump tweeted on Friday. “Go Big!”

Here’s where US indexes stood at the 4 p.m. ET market close on Friday:

Read more: Fund manager Brandon Nelson is tripling his benchmark in 2020 with ‘less-discovered’ companies that become big winners. Here are 3 themes and 9 stocks he’s betting on.

Senate Majority Leader Mitch McConnell said on Friday morning that a stimulus deal before the election was unlikely. But shortly after McConnell spoke, the White House economic advisor Larry Kudlow said Trump had raised his offer to a $1.8 trillion deal from $1.6 trillion. House Democrats recently passed a $2.2 trillion bill.

“I would like to see a bigger stimulus package, frankly, than either the Democrats or the Republicans are offering,” Trump said in a radio interview with Rush Limbaugh on Friday.

Video: White House

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Dow spikes 531 points for best day in 12 weeks on renewed hopes of economic stimulus

Dow spikes 531 points for best day in 12 weeks on renewed hopes of economic stimulus



a man standing in front of a computer: Xinhua/Wang Ying/ Getty Images


© Xinhua/Wang Ying/ Getty Images
Xinhua/Wang Ying/ Getty Images

  • US stocks surged on Wednesday on renewed hope for economic stimulus after President Donald Trump advocated for a piecemeal process of passing stimulus measures.
  • The Dow Jones industrial average’s 1.9% increase was its biggest jump in 12 weeks.
  • Potential individual stimulus measures that President Trump would like to see passed include direct payments of $1,200 to Americans and aid to the airline industry.
  • Trump sent the stock market into a tailspin late Tuesday afternoon after he tweeted that he was calling negotiations off between Democrats and Republicans on another round of fiscal stimulus.
  • Still, minutes from the Fed released on Wednesday showed that Fed officials worries a lack of further fiscal stimulus would threaten the economic recovery.
  • Watch major indexes update live here.

US stocks surged on Wednesday on renewed hope of economic stimulus after President Donald Trump signaled that he is open to piecemeal stimulus, rather than a single trillion-dollar-plus package.

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The willingness for individual stimulus measures comes after Trump torpedoed stimulus negotiations on Tuesday afternoon, tweeting that Democrat’s request for a $2.4 trillion stimulus package was too large and that they were not negotiating in good faith.

That tweet sent stocks lower Tuesday afternoon, reversing its daily gains, as investors soured on the idea of no stimulus being passed prior to the upcoming November election.

But Trump seemed to have reversed course Tuesday night, somewhat. He tweeted that he was open to signing legislation that would give Americans a direct payment of $1,200, in addition to providing aid to the airline industry.

Trump tweeted, “If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?”

Here’s

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