- U.S. stocks rallied on Tuesday on hopes that Congress will pass a stimulus package.
- Economists forecast a recession that could be as severe as the Great Depression.
- Stimulus measures won’t be enough to prevent deep damage to the economy.
The U.S. stock market soared Tuesday on hopes that Congress would soon sign a stimulus bill to protect the economy from the coronavirus pandemic.
Congress and the White House are negotiating a rescue plan that could inject nearly $2 trillion into the economy. The emergency measure would provide direct payments of $1,200 to most American adults and help small businesses closed across the country.
Democrats blocked a vote on Monday to push the package forward, criticizing a $500 billion fund the Republican proposal keeps for struggling businesses. But House Speaker Nancy Pelosi said this morning she expects a deal “in the next few hours.”
Why The Stock Market Rally Won’t Last
The Dow Jones rose as much as 1,800 points in response to optimism about the deal. The stock market’s most closely-watched index had fallen to its lowest level in three years on Monday.
The market has experienced rebounds like this before, only to disappear…
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Author: Stephanie Bedard-Chateauneuf