Coronavirus: US stocks rise as Fed intervenes again
US stocks have opened higher today after the US Federal Reserve committed an extra $2.3 trillion (£1.84 trillion) to shore up the struggling economy.
The S&P 500 rose two per cent, the Dow Jones climbed nearly 2.1 per cent and the Nasdaq opened 0.9 per cent up.
The rise means that the S&P 500 has now reversed 50 per cent of the declines it has suffered since hitting record highs earlier this year.
The Fed’s new intervention comes as a further 6.6m US workers filed for unemployment benefits, taking the total to over 16m over the last three weeks.
The figure is nearly double the number of jobless claims made over the duration of 2008’s financial crisis, when around 9m lost their jobs.
Markets were also bolstered by hopes that oil producer cartel Opec would agree a production cut deal with rival Russia.
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The two energy heavyweights meet this afternoon to discuss a reduction in output to put an end to their ongoing price war, which has sent oil markets into freefall.
The US is expected to play a key role in negotiations, with Russia indicating that it too must commit to a cut in shale production for any deal to go ahead.
The Fed has previously committed to a stimulus package worth $2 trillion, as well as an unlimited programme of bond-buying, in an attempt to protect the US economy.
Chairman Jay Powell said that the newly injected cash would be made available to employers and households to help them through the coronavirus pandemic.
More to follow.