Federal Reserve Chairman Jerome Powell says the economic expansion is “still far from complete.”
Stocks closed broadly higher on Wall Street Wednesday after President Donald Trump appeared to backtrack on his decision to halt talks on another rescue effort for the economy.
The S&P 500 climbed 1.7% 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 tweets came just hours after Trump sent the market into a sudden tailspin with his declaration that his representatives should halt talks with Democrats on a broad stimulus effort for the economy until after the election, saying House Speaker Nancy Pelosi had been negotiating in bad faith. The stakes are high, as economists, investors and the chair of the Federal Reserve all say the economy needs another dose of support following the expiration of weekly jobless benefits and other stimulus Congress approved earlier this year.
Federal Reserve Jerome Powell: Congress should pass a robust stimulus
“What we’ve seen over the last 24 hours is just confirmation that the market is really addicted to stimulus from the government,” said 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 S&P 500 index rose 58.50 points to 3,419.45, while the Dow Jones Industrial Average gained 530.70 points, or 1.9%, to 28,303.46.
The Nasdaq composite climbed 210 points, or 1.9%, to 11,364.60, despite a call by Democratic lawmakers for