Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

US stocks soar on hopes for a US$2 trillion stimulus package, Trump’s aim to resume business by Easter

Dow Jones Industrial Average jumped nearly 2,000 points, or 10.4 per cent on Tuesday; S&P 500 rose by 8.7 per cent and Nasdaq closed 7.7 per cent higher. The rebound from Monday’s sell-off was fuelled in part by President Donald Trump’s aim to resume business-as-usual by Easter

US stocks surged on Tuesday as congressional leaders said they were close to a deal on an unprecedented financial stimulus package to combat economic disruption expected as the coronavirus pandemic keeps businesses closed.

The Dow Jones Industrial Average jumped nearly 2,000 points to close up 10.4 per cent, its best percentile gain since 1933. The S&P 500 stock index was up 8.7 per cent, while the Nasdaq composite soared 7.7 per cent.

Stocks continued to build on the gains throughout the day. The turnaround followed a volatile session on Monday that sent stocks swooning after lawmakers failed to reach agreement on a rescue bill twice in as many days.

US President Donald Trump said during an interview with Fox News on Tuesday that he was considering reopening the economy within weeks, not months, dismissing criticism from medical experts, who warn that resuming business-as-usual might backfire.

“I’d like to see the country re-opend up by Easter,” on April 12, he said. “We cannot let the cure be worse than the problem.”

It was unclear how Trump would achieve that, however, since the stay-at-home and business-closing orders that have shuttered New York, California and elsewhere have been issued by state and local officials, not the federal government.

Lawmakers are negotiating the final details in a stimulus plan that mounts to about US$2 trillion to help the US economy go through the pandemic, which has so far had more than 50,600 cases confirmed in the country, with more than 600 deaths.

Senate Republicans and House Democrats are still battling on what portions should go to businesses or individuals. House Speaker Nancy Pelosi perhaps provided the markets their most hopeful news when she told CNBC on Tuesday morning that she believed a deal could be reached soon.

“I think there is real optimism that we could get something done in the next few hours,” she said.

The plan is said to include payments of US$1,200 to many American adults and another US$500 for children. It contains US$850 billion in loan and assistance programs for hard-hit businesses such as airlines, hospitality industry and small businesses. The programmes also include help for hospitals and health care providers, as well as cities and states.

Investors were also waiting for the release of March data on US manufacturing and services industries.

The optimism among US investors followed gains in European and Asian stocks overnight.

The Hang Seng Index finished with a 4.5 per cent gain at 22,663.49. The Shanghai Composite ended 2.3 per cent higher.

“Investors in Asia are focusing on the latest QE move [qualitative easing by the US Federal Reserve]. They believe Asia stocks will benefit from improving liquidity,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai.

He said that traders were bottom-fishing for stocks battered by the pandemic, leading to the big gains, but he did not see the rally being sustained.

South Korea’s Kospi closed up 8.6 per cent, and the tech-heavy Kosdaq jumped 8.3 per cent. Japan’s Nikkei 225 closed with a 7.1 per cent gain.

Australia’s S&P/ASX200 closed up by 4.2 per cent while New Zealand’s S&P/NZX50 shot up 7.2 per cent at the close. Singapore’s Straits Times Index rose 6.2 per cent.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×