The US Senate has voted to approve $1.9tn in stimulus legislation, taking the president’s plan to stoke America’s economic recovery a big step closer to its final passage in Congress but sending another jolt through financial markets. The upper chamber of Congress passed the fiscal stimulus legislation by 50 to 49, following party lines with all Democrats voting in favour and all Republicans present opposing.
President Joe Biden’s $1.9 trillion package will easily pass a vote in the House after it is taken up tomorrow, according to leading Democrats. Economists have already factored the mammoth spending bill into their calculations for the year, with Goldman Sachs Group Inc. seeing the unemployment rate tumbling to 4.2% by year end. Should everything go smoothly in the House, Biden will sign the measures into law before the aid from the previous package runs out on March 14.
Besides a broader correction that has weighed on tech stocks in recent weeks, the halo of the electric vehicle sector has been fading. That can be clearly seen with poster EV maker Tesla (NASDAQ:TSLA), whose shares are down nearly another 6% in premarket trade to $560. The company led by Elon Musk has seen its shares fall from an intraday high of $900.40 at the end of January to a low of $539.49 on Friday, marking a 40% plungeover the course of six weeks.