Dow spikes more than 1,000 points on hopes of coronavirus economic relief
The Dow Jones Industrial Average rallied on Tuesday, gaining 1,167 points, or 4.88%, to cap a volatile trading session characterized by 1,000-point swings as the novel coronavirus continues sending shock waves throughout U.S. markets.
Meanwhile, the S&P 500 gained 4.94% and the Nasdaq added 4.95%.
The rally made up for approximately half of Monday's losses and marked a possible sign investors are hopeful for President Donald Trump's pledge to intervene as the economy gets battered by the outbreak.
The volatile trading day began with an early Dow rally followed by a midday plummet, which wiped out the morning's gains, before an afternoon rally.
Tuesday's gains comes after financial markets suffered a historic sell-off on Monday, when markets plunged so much so quickly that it triggered a rare automatic halt to trading. By closing time, the Dow was down more than 2,000 points, or 7.8%. The S&P 500 fell 6.63% and the Nasdaq slipped 7.29%.
After the market rout, Trump made a brief appearance at the White House’s coronavirus press conference, touting an upcoming economic relief plan.
The president said he would meet with Senate Majority Leader Mitch McConnell and other Republican leaders to discuss economic relief proposals, including a payroll tax cut and loans for small businesses, in order to combat financial hardships that could result from the coronavirus. Trump promised more details Tuesday after the meeting.
Monday's market losses were also in part triggered by an oil price war that began Sunday evening after OPEC talks fizzled and Saudi Arabia slashed its oil prices, resulting in U.S. crude oil prices plunging by more than 25%. On Tuesday, U.S. oil prices rallied by approximately 8%.
It's been a volatile few weeks for markets amid uncertainty over the economic impact of the COVID-19 outbreak. As the markets seesaw and daily headlines induce anxiety, experts have told ABC News that everyday investors should keep their gaze focused on the long term.
