Dow surges 463 points to record high as House passes Biden’s $1.9 trillion stimulus bill

Nancy Pelosi
US Speaker of the House Nancy Pelosi (D-CA) speaks during a news conference with House Democrats regarding the upcoming vote on the American Rescue Plan, on Capitol Hill in Washington, DC on March 9, 2021. ANDREW CABALLERO-REYNOLDS/AFP via Getty Images


US stocks gained on Wednesday with the Dow hitting a record high following a House vote to approve the $US1.9 ($2) trillion coronavirus relief stimulus bill. Wednesday’s vote puts President Biden on track to sign the bill into law on Friday. The bill has stimulus checks for most taxpayers, unemployment benefits, and funding for vaccine distribution.

The Consumer Price Index, a key measure of inflation, gained 1.7% on a year-on-year basis, in line with economists’ expectations. Consumer prices increased by 0.4% in February, also in line with expectations.

BlackRock’s Rick Rieder said the US is likely to see some elevated inflation prints in the coming months as the economy rides strong growth.

“However, while we think growth will be surprisingly strong, we also think that over the intermediate-term the Fed is correct in thinking inflation will remain muted by the same factors that have held sway over the past two decades; the demographic trend of population aging and technological disinflation,” Rieder said in an email.

Here’s where US indexes stood after the 4:00 p.m. ET close on Wednesday:

GameStop stock was hit with 6 trading halts on Wednesday following a spike in volatility. Shares of the video-game retailer traded up as much as 41% to nearly $US350 ($454) before plummeting as much as 51% to $US172 ($223).

Citigroup is blocking investment firms that wouldn’t return an accidental Revlon wire from future debt offerings led by the bank, according to a Bloomberg report. Citi accidentally transferred nearly $US900 ($1,168) million to Revlon lenders last year when it meant to transfer only $US8 ($10) million last year.

Morgan Stanley told clients on Wednesday that the clean tech stock pullback is a buying opportunity. Analysts upgraded a basket of clean tech stocks to “outperform”, citing “strong growth in renewables and energy storage.”

A majority of the upcoming $US1,400 ($1,817) government stimulus check will be saved rather than spent, according to a survey conducted by Bank of America.

Bitcoin climbed for the fourth straight day on Wednesday to above $US56,000 ($72,661), flirting with the record high set in February amid continued support from major institutions.

Oil prices rose. West Texas Intermediate crude jumped as much as 1.17%, to $US64.76 ($84) per barrel. Brent crude, oil’s international benchmark, rose by 1%, to $US68.20 ($88) per barrel.

Gold jumped 0.4%, to $US1,723.60 ($2,236) per ounce.