(Reuters) - Wall Street fell in choppy trading on Wednesday after a strong rebound in the previous session as optimism about an imminent $2 trillion coronavirus package waned, with investors still concerned about the lasting economic hit from the pandemic.
All three main indexes had snapped higher in early trading following reports that Washington had reached a deal on a $2 trillion stimulus package to aid businesses and millions of Americans hit by the economic fallout of the outbreak.
But fears about a looming global recession and the likelihood of corporate defaults amid a collapse in business activity quickly sent the benchmark S&P 500 .SPX and tech-heavy Nasdaq .IXIC lower.
The Dow .DJI flitted between small gains and losses.
“Markets are going to stay very volatile until one of three things happens: either the number of new infections in the U.S. peaks, there is some kind of a cure or vaccine developed or until the U.S. economy begins to reopen,” said Randy Watts, chief investment strategist at William O’Neil+Co in New York.
Wall Street had staged a furious rally on Tuesday, with the Dow posting its best day since 1933, in wild swings that were last seen at the height of the global financial crisis.
The Senate will vote on the bill later on Wednesday and the House of Representatives is expected to follow soon after.
The total figure at stake exceeds the amount the country spends on national defense, scientific research, highway construction and other discretionary programs combined.
“What’s remarkable in this particular crisis, compared to 2008 is the response by policymakers because the
