In the week, the US Senate approved a $2 trillion stimulus plan with the Congress unanimously passing the bill, which awaits President Trump’s signature. Despite the renewed optimism, investors remain concerned on the distribution of the funds. The S&P500 gained 10% in the week while the Dow Jones finishing up 6% high by Thursday. Global markets recorded mixed reactions to the news of a $2 trillion stimulus closing bearish on Friday after a bullish three-day momentum.
Furthermore, we saw the US overtake China as the country with the highest number of COVID19 infections hitting over 100,000 by Friday evening. Still in America, on Thursday the jobless claims surged to a record 3.283 million in the week ending March 21 far above the levels seen after the 2008 financial crisis.
Oil experienced the fifth straight week of losses with the West Texas crude heading to the sub $22 region with oil prices down by around 60% since early January. There haven’t been any contacts between Saudi Arabia and Russia energy ministers over any increase in the number of OPEC+ countries, Reuters reported on Friday, citing an official for Saudi Arabia’s Energy Ministry.
The dollar had its biggest weekly decline since February 2016, plunging about 2.5% in the week.
