Stocks rose in strongly in late trading on Tuesday as investors weighed the prospects of fiscal stimulus to curb slower economic growth stemming from the COVID-19 coronavirus outbreak. The Dow Jones Industrial Average traded 1,053.17 points higher, up 4.42%. The S&P 500 was up 125.00, (+4.55%). The Nasdaq Composite advanced 346.64, an increase of 4.36%.
Facebook, Amazon, Apple and Netflix all rose more than 1%. JPMorgan Chase and Home Depot led the Dow higher, rising 5.5% and 4.4%, respectively.
“Fiscal stimulus is the antidote that can bridge the gap between what was happening before coronavirus and what will happen after it,” said Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management. “It certainly can’t cure the virus, but it can help contain some of the economic fallout… Today’s trading activity is the market trying to gauge whether the stimulus is going to be sufficient.”
President Donald Trump floated on Monday the idea of “a payroll tax cut or relief” to offset the negative impact from the coronavirus… The market suffered a historic sell-off on Monday, with the Dow and the S&P 500 plunging 7.8% and 7.6%, respectively, both posting their worst day since 2008. The Dow’s 2,013-point drop was also the biggest-ever point drop for the 30-stock average…
Monday’s monster sell-off triggered a key market circuit breaker that resulted in a 15-minute pause in trading early in the session.
MacDailyNews Note: Right around close, shares of Apple are up $17.33, or 6.51%, to $283.50. Apple’s all-time high stands at $327.85, set on January 29, 2020.