Global stocks jump after US lawmakers near deal on $900 billion stimulus package and the Fed upgrades GDP forecasts

Global stocks jump after US lawmakers near deal on $900 billion stimulus package and the Fed upgrades GDP forecasts

AP Photo/Richard Drew

Global stocks rose on Thursday as US lawmakers near a stimulus deal and the Fed projected an upbeat economic outlook.The Fed reiterated its support to supply liquidity, suggesting that the possibility of inflation won't go out of hand, a chief economist said.Expectations that Moderna's COVID-19 vaccine could receive FDA approval by Friday also contributed to investor optimism.According to analysts, a US stimulus deal will be completed before there is an agreeement on Brexit.Visit Business Insider's homepage for more stories.

Global stocks jumped on Thursday after US lawmakers neared a stimulus deal on a $900 billion package and the Federal Reserve improved its GDP outlook for the next two years.

Futures tied to the Dow Jones, S&P 500, and Nasdaq rose 0.5%.

Lawmakers have until Friday to pass the relief spending bill or risk a partial government shutdown. Confirmation of the package could be the thing markets need to kick-start a Santa rally heading into Christmas week, said Connor Campbell, a financial analyst at SpreadEx.

The Fed upgraded its economic projections on Wednesday, with members of the Federal Open Markets Committee now expecting US GDP to contract 2.4% in 2020 before rising 4.2% in 2021. Growth is seen reaching 3.2% and 2.4%