Tuesday’s stock market surge stumbled Wednesday morning after Democratic Speaker Nancy Pelosi failed to bring a $2 trillion coronavirus relief bill to vote in the House.
Senate leaders worked late into the night to pass a bipartisan bill sending money to workers in need as coronavirus distancing measures leave millions at home or without jobs. Pelosi has been a thorn in the side of the proceedings, however, refusing to vote for the initial deal agreed upon by Democratic New York Sen. Chuck Schumer and Senate Majority Leader Mitch McConnell. Her own alternative bill was packed with liberal policy proposals unrelated to the coronavirus.
Tuesday saw an 11.3 percent gain for the Dow Jones Industrial Average, the greatest single-day gain since 1933, according to the Associated Press. (RELATED: Stephanie Grisham Tests Negative For Coronavirus)
Early Dow gains dwindle as S&P and Nasdaq turn negative https://t.co/o0jjYHZtmC
— MarketWatch (@MarketWatch) March 25, 2020
Part of that surge was anticipation of relief action from Congress, which has now been stalled until at least Thursday. The stock market has lost three years of gains over the past three months thanks to coronavirus, and while Tuesday’s gains eliminated part of that loss, there is still much ground to cover.
Cases of coronavirus also have yet to peak in the U.S., which would be a critical signal for the markets that the crisis is beginning to end.
Experts have warned the U.S. may be three weeks away from cases peaking. (RELATED: TRUMP: ‘I Would Love To Have The Country Open By Easter)
“I would guess the US will hit a peak in deaths in the next two-three weeks, as the doubling time seems to be about two-three days.” Ira Longini, an epidemiologist and CDC advisor told CNN. “Maybe a partial lifting of the shelter-in-place for those less vulnerable may make some sense, in about three weeks. By then, much of the damage will have been done.”