Boeing gained 24% Wednesday, fueled by investor optimism that a coronavirus relief package will soon be approved and that the airline industry would be a beneficiary.
The Senate plans to vote Wednesday on a massive $2 trillion stimulus package to combat the impact of coronavirus on the US economy after multiple failed attempts at agreement between leaders and the Trump administration. The bill would then go to the House, where it is expected to be passed by unanimous consent.
The package would include as much as $500 billion in corporate aid, according to The Wall Street Journal. The Senate bill would also provide $58 billion in relief for US airlines, split between payroll grants for workers and loans to the airlines themselves.
Boeing, as well as other airline stocks, rose on Wednesday as the industry has been one of the hardest hit by the coronavirus pandemic as non-essential travel has been halted to curb the spread of the virus and COVID-19, the illness it causes.
The bill also allots $17 billion to assist companies crucial to national security, which includes Boeing, The Washington Post reported. The company last week said that the aerospace manufacturing industry would require at least $60 billion in aid.
Boeing's surge came amid a broader market rally as investor confidence grew that a coronavirus stimulus package would soon be approved, extending gains from Tuesday, the market's best performance in 87 years.
Boeing has shed more than 50% year-to-date through Wednesday's close.