Stocks Go Up With Trump’s “All of America” Program
The major stock indexes were able to recover on Friday. The rally was unleashed by President Trump’s unveiling of the government’s plan on dealing with the coronavirus outbreak in the country.
The Nasdaq Composite gained 9.34%, while the Russell 2000 index for the smaller companies rose by 7.6%. The Dow Jones Industrial Average jumped by 1985 points, which represented a rise of 9.36%, and the S&P 500 rose by 9.29%. The gains by the stock indexes represented their single best day since 2008. Back in October 2008, the stock indexes recovered after the federal government announced its plans on how it would deal with the financial crisis. The rally recovered the losses from the day before, which in turn represented their worst day since 1987.
The announcement of several large companies as to how they would all help in the effort to fight the spread of the virus also helped in encouraging the market. The price of oil also went up because part of the announcement that the president made is that the U. S. government will be purchasing petroleum for its strategic reserve.
Before the presentation at the White House, there was worry that the Democrats might not cooperate with the government and that partisan mudslinging would continue even as the fight against the disease is going on. It was not helped after House Speaker Nancy Pelosi gave a short address before the White House presentation. During which she gave the Democrat proposals for fighting the pandemic but did not answer questions afterward, nor did she mention any plan of cooperating with President Trump and the Republicans. Senate Minority Leader Chuck Schumer also complained about President Trump’s authoritarian tendencies without explaining as to what those tendencies were.
The market chose to ignore partisan politics and dwell on the good news provided by the outlined plan. President Trump also announced that the interest of federal students is going to be waived. That is part of the effort to lessen the impact of the pandemic on ordinary people. The declaration of national emergency in the United States is encouraging a lot of people that the government is doing the right thing when it comes to dealing with the virus. Across the globe, countries are trying to handle the crisis which started out in China but has since spread to most of the countries around the world.