Hong Kong: After the healthy rise the day before, the Asian market plunged into a red Tuesday. The market was uneasy about the prospect that Joe Biden’s huge stimulus measures might be downplayed or even failed for weeks.
Investors have been snapping up in November when Biden won the presidential election and vaccinations began to be recognized, and the usual support came from the support of the central bank and government spending.
But despite the general feeling on the trading floor that they are optimistic about the long-term prospects, the increase in confidence is being tested by virus infections and deaths, lockdowns and vaccination issues.
The biggest impetus for the stock market’s rise in recent weeks has been hope for Biden’s $1.9 trillion economic rescue plan.
But there is a growing concern that that it could be whittled down in Congressional negotiations with Republicans and even some Democrats concerned about its size, particularly in the wake of a $900 billion deal passed at the end of last month.
“I don’t expect we’ll know whether we have an agreement or to what extent the entire package will be able to pass or not pass until we get right down to the very end of this process — which will be probably in a couple weeks,” Biden said Monday.
Democratic Senate Majority Leader Chuck Schumer said the bill would not likely be ready until March, just as benefits from the previous package wind down.
“We’ll try to get that passed in the next month, month and a half,” he said in a call with New York City mass-transit advocates.