Economy & Labor

Stocks Surge After White House Says It's Open To Pandemic Aid After All

By Jim Zarroli

Published October 7, 2020 at 9:54 AM CDT

Traders gather on the New York Stock Exchange trading floor on Sept. 30. Major U.S. stock indexes rose Wednesday after President Trump said he'd be willing to consider economic stimulus measures after earlier calling off talks with lawmakers.

Stocks opened higher, reversing Tuesday's losses, amid word that Trump administration officials are considering stand-alone bills to aid airlines and small businesses.

All the major stock indexes jumped, with the benchmark S&P 500 up about 1.2%. The Dow Jones Industrial Average was up more than 400 points, or 1.5%.

Stock prices fell suddenly Tuesday afternoon, after President Trump tweeted that he was ending negotiations with House Democrats over a potential economic stimulus bill.

White House chief of staff Mark Meadows said Wednesday morning that Trump wrote the tweet after talking to Senate Majority Leader Mitch McConnell and House Republican Leader Mark Meadows about the lack of progress in talks with House Democrats.

Trump believes it was "better to be transparent" with Americans about the likelihood of an aid bill passing, Meadows said on Fox News.

Meadows said he was not optimistic about a comprehensive stimulus bill. House Speaker Nancy Pelosi is insisting on as much as $2.4 trillion in aid, which he called "incredibly high numbers," while Republicans have offered a $1.6 trillion plan.

But Meadows indicated that he and Treasury Secretary Steven Mnuchin are discussing bills to provide aid in stand-alone bills to businesses hit by the pandemic.

Airlines have seen their passenger traffic plummet since the pandemic lockdowns began. With stimulus talks stalled, airlines have announced they are furloughing thousands of employees.