REFILE-US STOCKS-Wall Street set to bounce from three-year lows

(Removes extraneous word in paragraph 2)
* Futures jump: Dow 3.91%, S&P 3.95%, Nasdaq 3.85%

By Uday Sampath Kumar
March 24 (Reuters) - Wall Street was set to bounce from
three-year lows on Tuesday, as signs of Washington nearing a
deal on a $2 trillion economic rescue package gave a shot of
optimism to markets reeling under the biggest selloff since the
global financial crisis.
The S&P 500 .SPX and Dow Jones .DJI indexes closed about
3% lower on Monday on fears of deep and lasting recession as
entire nations shut down to curb the coronavirus pandemic.
The severity of the spread of COVID-19 and the expectations
of aggressive stimulus measures have been mirrored in financial
markets with the S&P 500 gaining more than 9% in one session
only to plunge 12% the following day.
The benchmark index has lost $10 trillion in value since a
record high last month.
Hopes are now running high of the U.S. Senate passing the
stimulus bill, which is expected to provide financial aid to
Americans out of work because of the virus and help distressed
industries. "Fiscal stimulus is absolutely necessary because it directly
effects the consumer and consumer spending and consumer
confidence is what's driving the U.S. economy," said Nancy
Perez, senior portfolio manager at Boston Private Wealth in
Miami.
A separate proposal from Democrats in the U.S. House of
Representatives to grant airlines and contractors a $40 billion
bailout helped lift shares of American Airlines AAL.O , Delta
Airlines DAL.N and United Airlines UAL.O by about 10% in
premarket trading. Boeing BA.N rose over 11% and was the top gainer among Dow
components.
While the rescue package and the Fed's historic boost will
ease some pain in financial markets, traders remained doubtful
of a long-lasting recovery without evidence of a peaking in the
number of new COVID-19 cases.
"It appears that governments are able and, in some cases,
willing to do whatever it takes to try and lessen the impact
from what will undoubtedly be a severe economic shock," said
Andy Scott, associate director at Chatham Financial in London.
"What we don't know at this stage is how long it will take
to contain the virus that is still spreading exponentially, and
what kind of damage that will do to both populations and
economies across the globe."
With much of the economic blow sliding into the second
quarter, investors have shrugged off latest figures showing
sharp declines in business activity around the globe.
U.S. surveys of manufacturing and services sector activity,
due later in the day, are also likely to show a similar plunge.
At 08:20 a.m. EDT, Dow e-minis 1YMcv1 were up 723 points,
or 3.91%, S&P 500 e-minis EScv1 were up 87.75 points, or 3.95%
and Nasdaq 100 e-minis NQcv1 were up 269 points, or 3.85%.