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The Dow Jones Industrial Average soared on Tuesday, logging in its best day in 87 years 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 30-stock index recovered 2,112.98 points, or 11.4%, to 20,704.91, notching its biggest one-day percentage gain since 1933.
The broader S&P 500 regained 209.93 points, or 7.2%, to 2,447.33, for its best day since October 2008
The NASDAQ hiked 557.18 points, or 8.1%, to 7,417.86, its best day since March 13. Both the Dow and S&P 500 were coming off their lowest levels since late 2016.
Chevron gained more than 22% to lead the Dow higher. American Express and Boeing also rallied more than 20%. Energy was the best-performing sector in the S&P 500, soaring 16.3%, while industrials and financials each jumped more than 12%.
The market breadth was overwhelmingly on the positive side in a good sign this comeback could have legs. Advancers led decliners on the New York Stock Exchange by 12 to one.
Stocks hardest hit by the shutdowns resulting from the coronavirus led the gains Tuesday. Shares of Wynn and MGM Resorts were both up more than 15%. Delta Air Lines jumped more than 21%. General Motors shares, meanwhile, climbed nearly 20% 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 0.84% from Monday’s 0.79%. Treasury prices and yields move in opposite directions.
Oil prices added 52 cents to $23.88 U.S. a barrel.
Gold prices increased $92.60 to $1,660.20 U.S. an ounce.
