Stocks rebounded aggressively from a three-year low on Tuesday as investors hoped U.S. lawmakers were close to an agreement on a stimulus bill to rescue the economy from the damage caused by the coronavirus.
The Dow Jones Industrials recovered 1,545.51 points, or 8.3%, to 20,137.44.
The broader S&P 500 regained 161.19 points, or 7.2%, to 2,398.59. The Dow and S&P 500 closed at their lowest levels since late-2016 on Monday.
The NASDAQ hiked 434.7 points, or 6.3%, to 7,297.62.
Chevron gained more than 20% to lead the Dow higher. Boeing, McDonald’s and Disney also rallied more than 10%. Energy was the best-performing sector in the S&P 500, soaring 11.1%, while industrials and financials each jumped more than 9%.
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 13%. Delta Air Lines jumped more than 19%. General Motors shares, meanwhile, climbed nearly 11% after the automaker announced it will draw about $16 billion from its credit facilities to mitigate the coronavirus’ impact.
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 0.86% from Monday’s 0.79%. Treasury prices and yields move in opposite directions.
Oil prices added 14 cents to $23.50 U.S. a barrel. Gold prices increased $84.00 to $1,651.60 U.S. an ounce. Market Comeback Gains Steam