Quick Overview on Stimulus Deal 2.0
Congress did it! We have finally reached the long awaited stimulus relief package that has been sinking gains in the market for the last 2 weeks. This agreement occurred tonight, Sunday, in which congress agreed upon a $900 billion aid package which will, once distributed, provide aid to businesses, Americans, hospitals, schools, and many more. Senate Majority leader McConnell reported tonight that “We can finally report what our nation has needed to hear for a very long time: More help is on the way”.
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While this is excellent news regarding the stimulus for many Americans who are in need, this news is even bigger for the small businesses at need. Businesses were essentially forced to use the aid package last time around in a fashion which wasn't necessarily beneficial and productive for the owners, and more so beneficial for the employees. They were given extra money, weren’t let go, etc. while business owners will still struggling to break even. An integral aspect of this aid program is the payments for Americans. Americans struggling the worse, with the lowest amount of income, will receive $600, while the benefits diminish to lower values up until individuals who made $75,000 last year.
What are the markets going to look like in response? Well, the market has been pricing this said deal in for weeks now, so the lack of gains recently will certainly push markets higher. The Dow futures is up 42 points, while the S&P 500 futures is down 2.25 points, and finally the Nasdaq is up 30 points in the futures markets.