Stocks rise as Trump’s tweets on stimulus keep market spinning

Stocks closed broadly higher on Wall Street on Wednesday after President Donald Trump appeared to backtrack on his decision to halt talks on another rescue effort for the economy.

The S&P 500 climbed 1.7% after Trump sent a series of tweets late Tuesday saying he’s open to sending out $1,200 payments to Americans, as well as limited programs to prop up the airline industry and small businesses.

The tweets came just hours after Trump sent the market into a sudden tailspin with his declaration that his representatives should halt talks with Democrats on a broad stimulus effort for the economy until after the election. Economists, investors and the chair of the Federal Reserve say the economy needs another dose of support following the expiration of weekly jobless benefits and other stimulus that Congress approved this year.

“What we’ve seen over the last 24 hours is just confirmation that the market is really addicted to stimulus from the government,” said Sal Bruno, chief investment officer at IndexIQ. “When it thinks it’s not getting it, it sells off, and when it looks like there’s a possibility for that it rises, as we’ve seen today.”

The S&P 500 index rose 58.50 points (1.7%) to 3,419.45, while the Dow Jones Industrial Average gained 530.70 (1.9%) to 28,303.46. The Nasdaq composite climbed 210 (1.9%) to 11,364.60, despite a call by Democratic lawmakers for Congress to rein in the Big Tech companies. The Russell 2000 index of small-company stocks picked up 33.75 (2.1%) to 1,611.04.