The Dow Explodes as Senate Almost Reaches a $2 Trillion Stimulus Deal

The Dow Jones Industrial Average exploded over 13% in two days this week as the White House and congressional leaders announced they have agreed on a multi-trillion-dollar stimulus package.

The 30-stock average saw a gain of over 2%, or 495.64 points, to 21,200.55 on Wednesday. The S&P 500 was up by 1.1% and closed at 2,475.56. Wednesday was the first time since February the Dow and S&P 500 closed higher in back-to-back sessions.

The Nasdaq Composite however saw a drop of 0.5% to 7,384.30. Tech giants Facebook, Amazon Apple, Netflix and Google-parent Alphabet all closed lower.

The Dow soared more than 2,100 points on Tuesday, or over 11%. This was its biggest one-day percentage gain since 1933 and its best point increase ever. The S&P 500 also gained 9.4% for its best day since October 2008.

Stocks saw a pull back after Sen. Bernie Sanders said he was prepared to “put a hold on this bill until stronger conditions are imposed on the $500 billion corporate welfare fund.”

Sanders tweeted, “Unless Republican Senators drop their objections to the coronavirus legislation, I am prepared to put a hold on this bill until stronger conditions are imposed on the $500 billion corporate welfare fund.”

“The stimulus measures will continue acting as equity tailwinds as they seep into corners of the credit market presently locked,” remarked Adam Crisafulli, founder of Vital Knowledge, in a note. According to Crisafulli, the market “is clearly moving much faster than underlying fundamentals and just as sharp declines on prior sessions exaggerated economic conditions, the rebounds will too.”