December 2, 2020

Dow climbs 360 points as Trump backtracks, says hes open to piecemeal stimulus

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President Donald Trump
  • US stocks climbed on Wednesday after President Donald Trump signaled in a series of tweets that he was open to some stimulus measures being passed, including direct payments to Americans and aid to the airline industry.
  • Trump sent the stock market into a tailspin late Tuesday afternoon after he tweeted that he was calling negotiations off between Democrats and Republicans on another round of fiscal stimulus.
  • Trump tweeted Tuesday night, “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?”
  • Watch major indexes update live here.

US stocks climbed on Wednesday after President Donald Trump signaled that he is open to piecemeal stimulus, rather than a single trillion-dollar-plus package.

The willingness for individual stimulus measures comes after Trump torpedoed stimulus negotiations on Tuesday afternoon, tweeting that Democrat’s request for a $2.4 trillion stimulus package was too large and that they were not negotiating in good faith.

That tweet sent stocks lower Tuesday afternoon, reversing its daily gains, as investors soured on the idea of no stimulus being passed prior to the upcoming November election.

But Trump seemed to have reversed course Tuesday night, somewhat. He tweeted that he was open to signing legislation that would give Americans a direct payment of $1,200, in addition to providing aid to the airline industry.

Here’s where US indexes stood at 10:15 a.m. ET market open on Wednesday:

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Trump sent a series of tweets on Tuesday night, including: “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?”

As well as: “The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!”

Analysts weighed in on the stimulus spat between Trump and Democrats. JPMorgan said that the US economy can survive with stimulus being delayed, as long as it is implemented by early 2021.

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Meanwhile, Morgan Stanley said the US economy can survive without new stimulus until after the election and avoid a double-dip recession. 

House Democrat AOC disagrees with Wall Street analysts, saying that if Trump walks away from stimulus measures, the US economy would be “staring down the barrel” of one of the largest mass evictions in US history. 

Gold rose as much as 1.1%, to $1,898.12 per ounce.

Oil traded lower. West Texas Intermediate crude fell as much as 3.1%, to $39.42 per barrel. Brent crude, oil’s international benchmark, fell 2.6%, to $41.54 per barrel, at intraday highs.

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