Original title: More than 100,000 cases were confirmed in the US, doubling in 3 days! Trump signed a $2 trillion stimulus bill, US stocks dived at the end of the session, and the Dow fell 900 points Source: Securities Times

On Friday local time, US President Trump formally signed a $2 trillion economic stimulus bill to deal with the impact of the COVID-19 pandemic on the US economy.

However, the passage of the bill did not have an obvious effect on boosting the market. On March 27, local time, US stocks fell sharply, erasing some of the gains of the previous three trading days. The Dow dived at the end of the session and fell 700 points in a short period of time.

US President Trump officially signs $2 trillion economic stimulus bill

Earlier on the 27th local time, the US House of Representatives voted to pass a $2 trillion economic stimulus bill. So far, the bill has been approved by both houses of the US Senate and House of Representatives.

On Friday, US President Trump formally signed a $2 trillion economic stimulus bill to deal with the impact of the COVID-19 pandemic on the US economy.

The US Senate voted overnight on the 25th of this month to pass the third round of the $2 trillion emergency economic bailout plan. This is the largest bailout plan in US history.

This bill, which is unprecedented in size and scope, would distribute $1,200 in cash to most American adults, $500 to most children, create a $500 billion loan program for businesses, states, and cities, and allocate $350 billion to help small businesses deal with wage issues. It will also expand the unemployment insurance system and inject more than 100 billion US dollars into the US hospital system.

Earlier, US Treasury Secretary Mnuchin said that according to the bill, 1,200 US dollars of cash will be distributed to most American adults and 500 US dollars each to most children. It is expected that the distribution will be completed within three weeks.

Key elements of the program include:

1. Most American adults were given $1,200 in cash and $500 each to most children. If an individual's annual income exceeds 75,000 US dollars and the couple's income exceeds 150,000 US dollars, this benefit will begin to be phased out. The annual income of individuals exceeding 99,000 US dollars, and the income of couples exceeding 198,000 US dollars will be completely abolished.

2. Increase unemployment insurance by $600 per week for up to four months, on top of what the beneficiaries usually receive from the states. Expand eligibility for self-employed workers and independent contract workers.

3. Create a $500 billion taxpayer pool to provide loans, loan guarantees, or investments to businesses, state, and municipal institutions damaged by the crisis.

4. Allocate $25 billion to airlines and $4 billion to freight companies specifically to pay employee wages, salaries and benefits, and set aside $25 billion and $4 billion for loans and loan guarantees, respectively.

5. Provide $17 billion in loans and loan guarantees to unspecified “businesses essential to maintaining national security”.

6. Invest $117 billion in hospitals and health care for veterans.

7. It provided 16 billion US dollars for the national strategic drug and medical supplies inventory.

8. Loans of $350 billion were provided to small businesses to pay wages and benefits, with a maximum loan limit of $10 million.

9. For businesses that have been forced to close their operations or whose total income is 50 per cent lower than the previous year, a tax credit for retained employees is granted, the value of which does not exceed 50 per cent of wages paid during the crisis.

10. Group health plans and insurance providers are required to provide COVID-related prevention services without sharing costs.

11. Delaying payroll tax payments by employers requires payment of half of the deferred tax by the end of 2021 and the other half by the end of 2022.

12. Businesses receiving loans from the Government are prohibited from repurchasing shares until one year after the loan is repaid.

13. Salary increases for employees or executives who earned more than $425,000 last year are prohibited.

14. President Trump and his family's businesses are prohibited from receiving emergency taxpayer relief. This rule also applies to Vice President Mike Pence, heads of various executive departments, members of Congress, and their families.

15. Federal student loan repayments were suspended until September 30, with no interest during this period.

The three major US stock indexes all fell, and the Dow dived at the end of the session

On Friday EST, the three major US stock indices fell collectively. By the close, the Dow had fallen more than 900 points and dived at the end of the session. The decline was 4.06%, ending three consecutive gains.

The Nasdaq fell 3.79% to 7502.38 points; S&P fell 3.37% to 2541.47 points.

According to CCTV Finance, the reason that actually triggered the market's rapid dive in the end may be that the Federal Reserve released news that it will slow down the pace of buying US Treasury bonds starting next week. Next Thursday and Friday, the amount will be lowered from buying 75 billion US dollars a day to 60 billion US dollars a day. Simply put, the market believes that the Fed's support policy is not that strong.

Major European stock indexes fell sharply. By the close, the UK FTSE 100 Index had fallen 5.25%. Previously, the FTSE 100 Index once fell by more than 7% due to the diagnosis of the British Prime Minister. Germany's DAX30 index fell 3.68%, and France's CAC40 index fell 4.23%.

Morgan Stanley: The $2 trillion economic stimulus plan is not enough to restore stability to the US economy

US House Speaker Nancy Pelosi said earlier that the House of Representatives acted swiftly on Friday to get Congress to finally approve the historic $2 trillion coronavirus relief plan, then the House of Representatives will focus on considering further measures to support the struggling economy.

Although the scale of the programme dwarfs previous stimulus measures, it may not be enough to mitigate the severe short-term impact on the economy and the sharp rise in unemployment. On the evening of the 26th, Beijing time, the latest data released by the US Department of Labor showed that the number of people applying for unemployment benefits for the first time in the week of March 21 was 3.283 million, with an estimated 1.7 million, compared to the previous value of 281,000, an increase of more than 10 times. This figure broke the peak of 665,000 during the financial crisis in March 2009 and the historical high of 695,000 during the world economic crisis in October 1982. Previously, economists surveyed by Dow Jones (Dow Jones) expected the figure to be 1.5 million, while Wall Street analysts have been predicting higher numbers.

Morgan Stanley economists say the $2 trillion economic stimulus plan is not enough to stabilize the US economy.

According to a report released by the bank on the morning of the 27th local time, “We estimate that US production losses this year are about 920 billion US dollars.” Morgan Stanley believes that despite this, the $2 trillion economic stimulus plan will reduce US losses by mid-2021.” The report predicts that actual US GDP in the fourth quarter of this year will fall 2.3% compared to the same period in 2019, which will be “the lowest level since 2008.”

The global spread of COVID-19 is serious, and more than 100,000 cases have been confirmed in the US

Although policymakers around the world are stepping up measures to mitigate the economic impact caused by COVID-19, the spread of the virus has not slowed down. Currently, the world has a cumulative total of 590594 confirmed cases of COVID-19 and a cumulative total of 26,943 deaths. According to real-time statistics from Johns Hopkins University in the US, as of 5:11 Beijing time on the 28th, the cumulative number of confirmed cases of COVID-19 in the US had reached 100,717, of which 1,544 died.

Among all US states, New York State has the worst outbreak. New York Governor Como said that the state added 7,377 new cases of COVID-19, a cumulative total of 4,635 confirmed cases, 134 new deaths, and a cumulative death toll of 519. Dr. Anne Schuhardt, deputy director of the US Centers for Disease Control and Prevention, said that what is happening in New York City is probably just a “preview” of other US cities in the future.

The good news is that the testing capacity of the US for the coronavirus has begun to improve, but as of the 26th, only New York State had more than 100,000 people tested, and 36 states had less than 10,000 people tested.

Trump stressed that Americans must return to work as soon as possible

Trump doesn't seem to be wary of the spread of the epidemic. On the 26th, at the White House press conference, he stressed that the American people “must return to work.” At the same time, he pointed out that people should still take effective protective measures such as quarantine. Trump said that some regions less affected by the pandemic may be the first to resume work. “We must begin this process as soon as possible.” Trump said he will reveal the relevant plans next week.

On the 24th, he also made similar remarks during an interview. He believes the pandemic has damaged the economy and hopes that some US companies can resume operations before Easter (April 12). As for the remaining part, the government is formulating plans, hoping to help enterprises resume work without causing the spread of the epidemic to accelerate. Stopping work for too long can make economic recovery more difficult. This statement was opposed by some public health experts.

Furthermore, Trump also said in an interview on the 26th that he will not cancel the Republican convention originally scheduled to be held in August. “We are indeed planning that the conference will be held in Charlotte, North Carolina. Someone asked me today, 'Are you cancelling the meeting'? I said, it's impossible to cancel.” According to reports, the Republican convention is scheduled to be held from August 24 to 27, and there are still two months until the November general election.