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US markets end higher after Fed's plan to pump more than $2.3 trillion into US economy

10 Apr 2020 Evaluate

The US markets ended higher on Thursday, extending their previous session’s gains, as the Federal Reserve detailed additional actions to support the economy. Fed announced additional actions to provide up to $2.3 trillion in loans to support the economy during the ongoing coronavirus pandemic. The Fed said the funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic. Traders largely shrugged off preliminary data from the University of Michigan showing a record-breaking decline in US consumer sentiment in the month of April. The report said the consumer sentiment index plummeted to 71.0 in April after plunging to 89.1 in March. Street had expected the index to tumble to 75.0.

Besides, first-time claims for US unemployment benefits decreased in the week ended April 4th but still came in well above street estimates, according to a report released by the Labor Department. The report said 6.606 million people filed for unemployment last week, a decrease of 261,000 from the previous week's upwardly revised level of 6.867 million. Street had expected jobless claims to drop to 5.250 million from the 6.648 million originally reported for the previous week. The spike in initial jobless claims in the latest week brings the total since the coronavirus-induced shutdown to 16.780 million.

Dow Jones Industrial Average surged 285.8 points or 1.22 percent to 23,719.37, Nasdaq rose 62.67 points 0.77 percent to 8,153.58 and S&P 500 was up by 39.84 points or 1.45 percent to 2,789.82.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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