Dow Jones surges more than 1,100 points after coronavirus stimulus measures, Biden win

The Dow Jones Industrial Average surged nearly 1,100 points, or 4.5 per cent, Wednesday on hopes for more stimulus measures to fight the virus outbreak and primary wins by Joe Biden.

Congressional leaders agreed on an US$8.3 billion bill to battle the coronavirus, and investors are anticipating more central banks around the world will offer stimulus following the Federal Reserve’s rate cut Tuesday.

Health care companies helped lead the gains after Biden solidified his contender status for the Democratic presidential nomination. Investors see him as a more business-friendly alternative to Bernie Sanders. The S&P 500 jumped 3.9 per cent and the Nasdaq rose 3.3 per cent.

The gains more than recouped the market’s big losses from a day earlier as Wall Street’s wild, virus-fueled swings extend into a third week.

Health care stocks led the market’s spurt after a strong performance by Biden in state primaries on Tuesday moved him to top-tier status for the Democratic presidential nomination. Many investors believe he is more friendly to businesses than the other top contender, Bernie Sanders, whose proposals for health care and the economy could hurt profits at insurers and other companies.

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