US stocks rebounded slightly overnight as investors responded to the administration’s coronavirus stimulus package, that could add up to USD 1.2T in spending. USD 1000 checks will be made available to Americans as Treasury Secretary Steven Mnuchin said, “Americans need cash now, and the president wants to give cash now. And I mean now, in the next two weeks.”
Mnuchin’s proposal is reported to include USD 300B for small business loans, USD 200B in stabilization funds, USD 250B in cash payments with possibility of second round, as well as tax deferrals. He said, “It is a big number. This is a very big situation in this economy, we put a proposal on the table that would inject $1 trillion into the economy.”
DOW ended up 1048.86 pts or 5.20%. S&P 500 rose 6.00%. NASDAQ rose 6.23%. Despite the recovery, there is no confirmation of bottoming in DOW yet. We’re seeing 23189.76 as the key near term resistance to overcome. As long as it holds, further decline remains in favor for the near term, before DOW finds a bottom.
