Stocks have first back-to-back gains since sell-off began

Stocks scored their first back-to-back gains Wednesday since a brutal sell-off began five weeks ago, but much of an early rally faded late in the day as a lastminute dispute threatened to hold up a $2 trillion economic-rescue package in

Congress.

The S&P 500 rose 1.2%, bringing its two-day gain to 10.6%. The market is now down nearly 27% since setting a record high a month ago as the economy has been ravaged by the coronavirus pandemic.

Many on Wall Street say they don’t think stocks have hit bottom yet, but optimism rose after the White House and Senate leaders announced an agreement on the aid bill early Wednesday. A vote had been expected in the Senate by the end of the day, but then some lawmakers balked at the proposed bill.

Investors were anxiously waiting for the aid in the rescue package, which lawmakers hope will help blunt the blow to the economy as businesses shut down to slow the spread of the coronavirus that causes COVID-19.

“They’re hitting on all the right elements of what the U.S. economy needs during the shutdown to bridge itself to the other side to open up economic activity,” said Darrell Cronk, chief investment officer of Wells

Fargo Wealth and Investment Management.

But even optimists say the package provides just the second leg of three that markets need to regain lasting confidence. The Federal Reserve and central banks are also offering tremendous aid by cutting interest rates and supporting lending markets, but investors say they need to see the number of new infections peak before they can feel comfortable knowing how deep the looming economic downturn will be.

“There’s a lot of bad news, there’s very little tangible good news and there’s a lot of uncertainty in between,” said Jack

Ablin, chief investment officer at Cresset.

With widening swaths of the economy shutting down and layoffs mounting, economists are sure a steep drop-off is coming. They’re forecasting a report on Thursday will show a record number of Americans filed for unemployment benefits as layoffs sweep the country. What’s unsure is how long it will last.

The S&P 500 ended Wednesday up 28.23 points to 2,475.56. The Dow Jones Industrial Average rose 495.64 (2.4%) to 21,200.55. The Nasdaq dropped 33.56 (0.5%) to 7,384.30. The Russell 2000 index of smaller-company stocks gained 13.79 (1.3%) to 1,110.34.