The rally Tuesday comes after a major rout for U.S. financial markets on Monday.
The Dow Jones Industrial Average spiked more than 700 points or 3% at the opening of Tuesday’s trading session, a sign that investors are welcoming President Donald Trump’s pledge to intervene as the economy gets battered by the coronavirus outbreak.
The S&P 500 and Nasdaq both gained about 3% Tuesday.
The rally comes after financial markets suffered major losses Monday. Markets plunged enough to trigger a rare automatic halt to trading early Monday. 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 ended up slashing 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 impacts of the COVID-19 outbreak. As the markets seesaw and daily headlines induce anxiety, experts say everyday investors should keep their gaze focused on the long term.
