US stocks gain on latest Trump comment on stimulus
- Congressional Democrats have resisted such narrow bills that do not contain their priorities, which include billions in aid for state and local governments.
NEW YORK: US stocks rose early Wednesday after President Donald Trump partially reversed his move to end talks on a fiscal package and called for stimulus payments, among other targeted initiatives.
About 15 minutes into trading, the Dow Jones Industrial Average was up 1.3 percent at 28,134.71.
The broad-based S&P 500 also gained 1.3 percent to 3,403.61, while the tech-rich Nasdaq Composite Index advanced 1.4 percent to 11,309.18.
Trump on Tuesday said he was directing his staff to end the talks, accusing House Speaker Nancy Pelosi of negotiating in bad faith and saying the measure would be taken up after the election.
Stocks fell sharply following Trump's shock announcement. But on Tuesday night, Trump called for Congress to "immediately" pass legislation to extend aid for airline workers and small businesses. Trump also said he would back another round of $1,200 stimulus payments for workers.
White House economic advisor Larry Kudlow told CNBC Wednesday that Trump backed targeted measures, adding, "I don't think the recovery depends on the massive assistance package."
Congressional Democrats have resisted such narrow bills that do not contain their priorities, which include billions in aid for state and local governments.
But Trump's comments boosted airline shares, which had fallen hard on Tuesday. American Airlines jumped 4.2 percent and United Airlines surged 6.3 percent.
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