The market was down on Friday, after rising more than 20% earlier this week.
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Topline: Stocks fell on Friday morning, ending the market’s biggest three-day rally since 1931, amid news that the $2 trillion coronavirus stimulus bill, which made it out of the Senate earlier this week, could fail to pass in the House before this weekend, adding more uncertainty for Wall Street investors.
- At Thursday’s open, the Dow Jones Industrial Average fell 3.3%, more than 700 points, while the S&P 500 was down 3.1% and the Nasdaq Composite lost 2.9%.
- Futures briefly traded higher after the market closed yesterday, before losing steam overnight and indicating a lower open on Friday.
- Stocks have rallied this week amid news that Congress is coming closer to passing a massive $2 trillion fiscal stimulus bill to stem the economic fallout from the coronavirus.
- Following days of tense negotiations and two failed votes, the Senate passed the bill earlier this week, but questions are now emerging on whether the House can organize a vote and pass the bill before the weekend.
- The bill is expected to be voted on later today, with House Speaker Nancy Pelosi saying that it will be passed “with strong bipartisan support”—but one member of the House, Thomas Massie (R-Ky.), has threatened to demand a recorded vote rather than a long distance voice vote, causing lawmakers to scramble to get back to Washington in time.
Key background: Weekly jobless claims, reported on Thursday, surged to a staggering 3.28 million this week—3 million more than last week and more than quadruple the previous weekly record of 695,000. But stocks shrugged off the bad news: Before falling on Friday, the Dow and S&P 500 both gained more than 6% on Thursday, capping off their biggest three-day rally since 1931. The two major indexes are now up more than 20% since hitting three-year lows on Monday, which would technically be defined as a bull market. Both the Dow and S&P 500 are still down over 20% from last month’s record highs, however.
Crucial statistics: The number of global cases of coronavirus has risen to more than 542,700, according to data from Johns Hopkins University. As of Friday, the U.S. now has the most cases out of any country in the world, with almost 86,000 infected.