US stocks climbed on Wednesday after the White House and the Senate reached an agreement overnight on a relief package designed to fight the economic fallout of coronavirus.
The roughly $2 trillion relief package is set to expand unemployment benefits, push funds to hospitals and healthcare workers, issue emergency loans to both small and large businesses, and checks for Americans. The bill calls for $1,200 payments to adults and $500 for each child.
About $50 billion will be allocated to loans for airlines, an industry hit particularly hard by the pandemic and a sudden halt to travel activity.
The gains follow the Dow’s best day in 87 years. The benchmark index soared 11% through Tuesday’s session as a fiscal deal neared. The Federal Reserve has already issued monetary support through rate cuts, asset purchases, and new credit facilities.
The Senate stimulus package will more directly put money in the hands of ailing businesses and consumers as the outbreak risks near-term economic recession.
Oil traded lower Wednesday morning after turning lower in the previous session. The commodity has been under pressure in recent weeks as Saudi Arabia and Russia flood the market with fresh inventory and drive prices near two-decade lows.