U.S. stocks rallied as investors speculated that the US$2 trillion rescue package poised to pass Congress will blunt the pandemic’s toll on the economy. Treasuries held gains and the dollar fell for a third day.

The S&P 500 was headed for its first three-day rally since February, with health stocks and utilities leading the way. The Dow Jones Industrial Average climbed 20 per cent above its March 23 through during Thursday’s session.

Jobless claims surged to a record 3.28 million Americans last week as businesses shut down to help prevent the spread of the virus. While the reading exceeded estimates, aid from the U.S. government my help offset the damage to workers and businesses. Federal Reserve Chairman Jerome Powell also sought to assure the public that the central bank wouldn’t run out of crisis-fighting ammunition.

“Now that the stimulus bill is moving through, that’s a countervailing force to the rising jobless claims,” said Brian Nick, chief investment strategist at Nuveen. “Hopefully, if all works as intended, businesses should be able to get loans relatively quickly, cease their layoffs and potentially -- if they want to get the full benefits of the loans -- bring people back that they already laid off.”

The jobless number is one of the first major data points to show the extent of the impact on the American economy since states around the country began widespread business shutdowns aimed at preventing the coronavirus from spreading.

European stocks moved higher, and sovereign debt rose after the region’s central bank announced it will scrap limits on bond purchases for its emergency program, a landmark decision that gives it almost unlimited power to fight the economic fallout from the virus. The euro strengthened while a gauge of the dollar headed for a third down day.

While rescue measures across major economies are unprecedented, traders remain cognizant of the virus’s escalating toll. The world’s cases now top 451,000, with more than 20,000 deaths. The U.S. death toll has topped 1,000.

“Investors need to remain vigilant about how the growth rate of new cases develops and how governments respond going forward,” said Oliver Blackbourn, a multi-asset portfolio manager at Janus Henderson Investors. “The support package should help to assuage the fears about the worst possible economic outcomes for individuals and companies.”

Elsewhere, crude declined after three days of gains. The head of the International Energy Agency said global oil demand is in free fall because of the pandemic, made worse by the price war between Saudi Arabia and Russia. Emerging-market shares and currencies climbed.

These are the main moves in markets:

Stocks

The S&P 500 Index rose 4.9 per cent as of 2:57 p.m. New York time.
The Stoxx Europe 600 Index rose 2.6 per cent.
The MSCI Asia Pacific Index advanced 0.8 per cent.

Currencies

The Bloomberg Dollar Spot Index decreased 1.7 per cent.
The euro advanced 1.4 per cent to US$1.1036.
The British pound increased 2.1 per cent to US$1.2132.
The Japanese yen advanced 1.8 per cent to 109.26 per dollar.

Bonds

The yield on 10-year Treasuries dipped seven basis points to 0.80 per cent.
Germany’s 10-year yield decreased 10 basis points to -0.36 per cent.
Britain’s 10-year yield fell five basis points to 0.4 per cent.

Commodities

Gold rose 0.8 per cent to US$1,629.30 an ounce.
WTI crude decreased 7.3 per cent to US$22.71 a barrel.