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Stock futures gain ground as Congress moves closer to a stimulus deal
Dow, S&P extend losses after worst week since 2008 financial crisis
FOX Business’ Lauren Simonetti says investors want Congress to pass the stimulus relief package as soon as possible.
U.S. equity futures are pointing to a higher open when Wall Street begins trading on Tuesday as congressional and White House officials emerged from grueling negotiations at the Capitol over the $2 trillion coronavirus rescue package saying they expected to reach a deal Tuesday.
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This comes after the Federal Reserve promised support to the struggling economy.
The major futures indexes are indicating a gain of more than 3 percent or around 600 Dow points.
The Fed promised to buy as many Treasurys and other assets as needed to keep financial markets functioning.
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That came as Wall Street fell 3 percent after Congress failed to approve an economic support package. It would send checks to U.S. households and offer support for small businesses and the hard-hit travel industry, but Democrats say it favors companies too heavily at the expense of workers and public health.
In Asia, Japan's Nikkei rose 6 percent, The Hang Seng in Hong Kong was 3.3 percent higher and China's Shanghai Composite rose 0.4 percent.
The Fed's promise goes beyond the $700 billion in purchases announced last week.
The central bank said it will buy a wide range of investments, including corporate bonds for the first time, to improve trading in markets that help home buyers purchase houses, state and local governments borrow and businesses to get enough short-term cash to make payroll.