Markets soar for second straight day on U.S. stimulus deal
Though St. Patrick’s Day was last week, there was green everywhere on Wednesday. Like the day before, Washington’s US$2 trillion stimulus package was the catalyst with early-morning report stating that dealmakers were in the bottom of the ninth. If passed, the bill would be the largest aid package ever in American history, putting money into the pockets of American citizens and small businesses that are reeling from COVID-19. However, a late-afternoon snag saw negotiations stretch into extra innings as senators bickered over raising unemployment payments. Despite that, the Dow closed up 2.39%, the S&P half that, while the Nasdaq dipped into the red -0.45%. Boeing soared over 24% in heavy trading (11.5 million shares) while Colliers International leapt 23.78%. Oil gained around 1% while gold lost that much.
In contrast, the TSX soared Wednesday by 4.52%. Stocks that had been beaten senseless in recent sessions stormed back. For the second day in a row, Chorus Aviation soared over 30%, closing at 28.47%, with GoEasy performing in the same ballpark. Winnipeg busmaker, New Flyer Industries (NFI Group), which just slashed its dividend, zoomed 25.6%. Utilities like Northland Power and REITs such as Boardwalk rallied 16.27% and 18.8% respectively because of yield-hungry traders. In the States, Boeing soared over 24% in heavy trading (11.5 million shares) while Colliers International leapt 23.78%
The second day of huge gains offered investors hope, but no one is under any illusion that volatility will flatten or sell-offs will cease. In America, the number of COVID-19 cases continues to rise and coming unemployment numbers could jolt markets.