The event everyone was waiting for and knew was just a matter of time, resulting in Tuesday’s biggest one-day rally since 1933 – namely the Congressional
taxpayer daylight robbery coronavirus bailout deal which started at $850BN and has since grown to $2 trillion (with an additional $4 trillion in Fed purchasing power) – was finally reached just after midnight on Tuesday and in the early minutes of Wednesday. A vote in the Senate, as well as House approval are still pending.
The result was initial euphoria as the S&P jumped to 2,499 – the exact same high hit last on quad-witching Friday last week… before it rolled over as the news was sold…
… while Treasuries did the mirror image and rebounded with yields sliding to 0.81% as investors waited for details on government rescue packages to counter the hit from the coronavirus.
As US futures faded the news, equity markets across Europe and the U.K. also lost steam from an earlier surge as euro-region leaders inched toward a stimulus accord. The Stoxx 600 index turned red after earlier rising almost 5%