U.S. stocks bounced back on Tuesday, March 10, with the Dow Jones Industrial Average recouping more than 1,100 points following a sell-off on Monday.
The market recovered as investors hope for a fiscal stimulus after President Donald Trump floated the idea on Monday of “a payroll tax cut or relief” to offset the negative impact from the coronavirus on the economy, according to CNBC.
The Dow Jones closed Tuesday at 25,018.16, up 1,167.14 points, or 4.9%, which cut the index’s losses from Monday in half.
This is also the third-best point gain on record for the Dow Jones.
The S&P 500 ended 4.9% higher at 2,882.23, notching its best day since December 2018.
The Nasdaq Composite Index also jumped 4.9% to 8,347.40.
The rally helped recoup some of the losses in the previous session when the Dow Jones and S&P 500 plunging 7.8% and 7.6%, respectively, their worst day since the 2008 financial crisis.
Investors were encouraged after President Trump, at a press briefing Monday night, said his administration would be asking Congress to cut payroll taxes and pass other quick measures to ease the impact of the coronavirus on workers. The president continued on Tuesday that he had a “great meeting” with Senate Republicans, and that “there’s a great feeling about doing a lot of things.
In addition, crude oil prices moving higher also helped push the stock market. U.S. West Texas Intermediate crude futures were up 10.4% at $34.36 per barrel on Tuesday.