- Dow futures rallied after Donald Trump’s top economic adviser unveiled a massive $6 trillion stimulus package for the U.S. economy.
- These gains rapidly faded, as the stock market failed to move higher after a historic day for the Dow Jones on Tuesday.
- Worryingly for Wall Street, there doesn’t appear to be a Plan B if the fiscal package doesn’t push stocks higher longer-term.
After the largest single-day point rally in the history of the Dow Jones, the stock market failed to extend the move overnight despite a brief spike.
The volatility came after President Trump’s top economic adviser touted an incredible $6 trillion stimulus package for the United States.
Dow Futures Fall After Historic Rally
All three of the major U.S. stock futures indices popped and dropped Tuesday evening, after initially rallying in the wake of a multi-trillion-dollar stimulus announcement.
In the commodity sector, the price of oil ticked up 2.5% above $24 a barrel, while gold continued its impressive rally with another 1.5% gain.
Major cryptocurrency bitcoin has found its feet again, rallying 5% to around $6,800.
President Trump’s top economic adviser Larry Kudlow on Tuesday unveiled the biggest emergency spending package in history.
Providing direct aid to families, loan insurance for small business and bailouts for corporations, Kudlow announced the fund with the astonishing $6 trillion price-tag:
It’s a $2 trillion program and $4 trillion of lending power from the Fed. That’s a $6 trillion package. And by the way, the Fed can’t act fully unless we pass phase 2 because of phase 2 contains the increase in the exchange stabilization fund, which is the equity piece for the Fed lending so that the U.S. government is the guarantor, not the Fed. So those two packages go together.
Economists Believe Fed Can Keep Bond Yields Down Despite Easing Program