U.S. Markets Rally as Coronavirus Stimulus Plans Advance in Congress

Major U.S. stock indices rallied on Tuesday amid hopeful signs that another federal economic stimulus package is coming together to provide relief to workers and businesses jolted by the sudden impact of the coronavirus pandemic.

The Dow Jones Industrial Average was up more than 1,000 points, or 6%, at the start of the trading session. The NASDAQ was up nearly 350 points, or 5%, while the S&P 500 climbed more than 125 points.

Media and entertainment giants benefitted from the buying wave. Disney was up more than 9% in early trading. ViacomCBS, which has lost more than 50% of its value over the last month, was up more than 8%. AMC Networks shot up more than 10%. Discovery was up more than 7%. Lionsgate, also battered hard in the plunge of the past two weeks, saw a more than 5% gain in the early going.

Markets may have been goosed along by comments from House Speaker Nancy Pelosi on CNBC that she had “real optimism” that a compromise stimulus bill could be passed by the House and Senate by day’s end. There have also been proactive steps from the private sector to address the economic devastation caused by mass shutdowns of non-essential businesses in major cities.

Ford CEO Jim Hackett said Tuesday that the automaker has teamed with GE Healthcare to produce ventilators and safety gear for health care workers. Starbucks CEO Kevin Johnson announced last week that the company will provide 30 days of pay for workers in an effort to ease the impact on families and the broader economy.

AT&T and Comcast shares were lifted by the rising tide although not as much as other media peers. Facebook, Netflix, Amazon and Apple posted modest single-digit gains.

The movement comes after Monday’s session ended with the Dow and others in the red but not by as steep a drop as were logged last week.

More to come