Stocks Surge on Hope for a Virus Bailout Package
The Dow Jones Industrials recovered 1,223.17 points, or 6.6%, to 18,815.10, emerging from Monday’s three-year low.
The broader S&P 500 regained 134.17 points, or 6%, to 2,271.57
The NASDAQ opened the day up 368.82 points, or 5.4%, to 7,227.48.
Boeing gained more than 12% to lead the Dow higher. Chevron and United Technologies also rallied more than 10%. Energy was the best-performing sector in the S&P 500, soaring 9.3%, while industrials jumped 7.2%.
Stocks hardest hit by the shutdowns resulting from the coronavirus led the gains in pre-market trading Tuesday. Shares of Wynn and MGM Resorts were both up more than 10%. Delta Air Lines jumped more than 14%. General Motors shares, meanwhile, climbed nearly 6% after the automaker announced it will keep its dividend.
House Speaker Nancy Pelosi told the media there is "real optimism" in Congress over a stimulus deal being reached in the next few hours. Senator Chuck Schumer and Treasury Secretary Steven Mnuchin had said they hoped to have a deal by Tuesday morning.
Markets are also getting support from the Federal Reserve, which said Monday it would embark on an open-ended asset purchase program
Prices for the 10-Year U.S. Treasury lost ground, raising yields to 0.85% from Monday’s 0.79%. Treasury prices and yields move in opposite directions.
Oil prices added 41 cents to $23.77 U.S. a barrel. Gold prices increased $101.30 to $1,561.30 U.S. an ounce.