However, another proposal proposed by the U.S. Treasury secretary is similar to the $1.5 trillion stimulus proposed by the bipartisan problem solving group in the house earlier this month, which was rejected by House Speaker Pelosi. On Monday, Pelosi proposed a $2.2 trillion stimulus package for the fifth round of the epidemic relief, and earlier this month Senate Republicans tried to pass a $500 billion rescue plan.
It is the multiple differences between the White House and Congress that make investors increasingly doubt whether a new fiscal stimulus can be introduced before the US presidential election on November 3. Some analysts believe that, as many senior officials of the Federal Reserve, including Chairman Powell, have said, fiscal stimulus is the most effective policy to deal with the second recurrence of the epidemic. If an agreement is not reached, it will cause resistance in the capital market.
The three major U.S. stock indexes are about to fall for the first month since March this year. By the end of Tuesday, the S & P 500 index fell 4.7% in September, the Dow Jones index fell 3.4% and the NASDAQ index fell 5.9%. The U.S. unemployment rate remained at a high level of 8.4% in August. The September non farm employment data will be released on Friday. The catering, tourism and entertainment industries are still affected by the epidemic, which will slow down the pace of economic recovery.
Changes in the stock market can also reflect the importance of fiscal stimulus. Stocks sensitive to economic recovery, such as airlines, banks and cruise companies, led the markets gains today as optimism over a deal was reached. Before midday, American Airlines and united airlines were up more than 3%, JP Morgan, Goldman Sachs and Citigroup were all up more than 1%, and Norwegian Cruise lines were up more than 7%.