Stocks rose Wednesday after President Donald Trump said he would consider alternative aid measures such as a new round of stimulus checks, support for airlines and the Paycheck Protection Program, a day after halting stimulus talks until after the presidential election.
The Dow Jones Industrial Average jumped 325 points, or 1.17%, to 28,098, the S&P 500 gained 1.11% and the Nasdaq jumped 1.12%.
Shares of carriers American Airlines (AAL) – Get Report, Delta Air Lines (DAL) – Get Report and United Airlines (UAL) – Get Report rose Wednesday after Trump tweeted his support for $25 billion more for airlines.
Trump told his team Tuesday to halt negotiations with Democrats on a fiscal stimulus package, sending stocks sharply lower.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump said in a tweet.
Trump’s announcement over Twitter followed the urging by Federal Reserve Chairman Jerome Powell for Congress to provide more fiscal support since a U.S. recovery would be weak without additional aid from the government.
Later Tuesday, however, the president tweeted that he would be willing to pass relief measures such as a new round of $1,200 stimulus checks.
“If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?” Trump tweeted.
In addition to the aid for airlines, Trump said Congress should approve $135 billion for the Paycheck Protection Program to help small businesses.
House Speaker Nancy Pelosi, the chief negotiator for the Democrats, said in a statement that Trump “showed his true colors: putting himself first at the expense of the country, with the full complicity of the GOP Members of Congress.”
She added that “walking away from coronavirus talks demonstrates that President Trump is unwilling to crush the virus.”
The minutes of the Federal Reserve’s Sept. 15-16 meeting will be released Wednesday at 2 p.m. ET. At last month’s meeting, the central bank signaled it would keep interest rates low through at least 2023, and said it would hold off on hiking rates until inflation reaches 2% and rises consistently.
Shares of Amazon.com (AMZN) – Get Report, Facebook (FB) – Get Report, Apple (AAPL) – Get Report and Alphabet (GOOGL) – Get Report, the parent company of Google, edged higher Wednesday as investors shrugged off a House panel’s proposal to limit the power and influence of the tech giants.