The U.S. will hand out US$1,400 (about HK$10,900) to each eligible national, and the market envisions that some of the related funds will flow into the stock market, causing U.S. stocks to steal a new high. However, the media cited the U.S. public opinion survey shows that only 5% of respondents said that after receiving the cash handout from the government, they would use the funds to invest in the stock market. From this point of view, there is no data to support the claim that the government handing out money will stimulate retail investors to invest in the U.S. stock market.
According to the survey, the largest number of respondents would use the government bailout money for debt repayment or bill payment, accounting for 35%. Twenty percent said they would use it for savings; 20 percent for necessities; 5 percent to buy things they like; 3 percent to donate to charitable activities; 3 percent for other purposes; and 8 percent were undecided.
U.S. President Joe Biden signed a $1.9 trillion bailout package last Thursday (11), of which the first $1,400 in grants will be available to subsidized families as soon as last weekend. Economists expect that the bailout funds will boost the U.S. economic recovery in the coming months.
A statement from the IRS said that the first round of payments will be made in the form of electronic transfers, and that most people will receive them this week, except for some recipients who will receive remittances at the end of last week. In the coming weeks, other batches of relief payments will be sent by electronic transfer, check by mail, and financial card by signature. However, most of them are mainly electronic transfers.
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