The early reaction by investors suggests investors aren’t too impressed by the package. However, when combined with the Fed’s moves earlier in the week, the market could garner some support.
The major U.S. stock indexes are edging lower early Thursday despite the Senate unanimously approving a $2 trillion economic relief package late Wednesday, which aims to cushion the blow from the coronavirus outbreak. The stimulus bill now heads to the House of Representatives, which will push to pass it by voice vote Friday morning as most representatives are out of Washington.
At 04:32 GMT, June E-mini S&P 500 Index futures are trading 2458.00, down 9.00 or -0.36%. June E-mini Dow Jones Industrial Average futures are at 21045, up 19 or +0.09% and June E-mini NASDAQ-100 Index futures are at 7443.75, down 24.00 or -0.32%.
The early reaction by investors suggests investors aren’t too impressed by the package. However, when combined with the Fed’s moves earlier in the week, the market could garner some support. The money spent by Americans receiving government aid is not likely to save the country’s economic growth this quarter and certainly won’t have an impact once it’s gone so stock traders are treating it as a “one and done” event, or even a nice gesture on the part of politicians to ease the pain that is coming from massive unemployment and a global recession.
The bill, designed to offer relief to individuals, the health care system and even an entire corporate sector ravaged by the outbreak, would:
This is a one-time cash infusion for everyday Americans. For many, this may be their one shot at building an emergency fund or simply staying afloat.
Experts are saying recipients should pay for medication, groceries, and sudden life emergencies. After accounting for critical expenses, Americans are encouraged to create an emergency fund, pay down debt, buy time or invest.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.