At closing bell, the Dow made gains of 2,112.98 points, and the S&P 500 saw a 209.93-point increase. The Nasdaq Composite soared by 557.18 points into green territory. Both European and Asian markets also reported huge gains Tuesday as a result of the US Federal Reserve’s actions to assist the economy and news of Italy experiencing a slowdown of its COVID-19 infection rate.
With a more than 11% rally, Tuesday's figures mark the biggest one-day percentage gain by the New York Stock Exchange since 1933.
Oil prices, meanwhile, struggled to hold onto gains throughout the day as prices shifted between red and green territory in the hopes that a possible US stimulus package could weaken the economic impact of the novel coronavirus outbreak.
Sean Darby, a global equity strategist, recently suggested in a note seen by CNBC that market volatility is likely coming to an end, explaining that a number of “risk indicators are peaking with only credit spreads misbehaving.”
Similar sentiments were expressed by Michael Novogratz, the CEO of Galaxy Digital, during the latest showing of the financial outlet’s “Squawk Box” morning program.
“From a market perspective … it feels like we’re coming to the end of it,” he said. “It doesn’t necessarily mean the market’s going to go up, but a lot of that crazy volatility is kind of coming out.”
US Senate Stimulus Package
Despite promises to finalize a stimulus package Monday, Senate lawmakers failed to make good on their word as negotiations dragged on throughout the day on Tuesday. The day prior, a new procedural vote on the bill was blocked by Democrats for a second time.
Senate Democrats have indicated that they will not support the financial package as it stands due to the lack of aid for unemployed Americans who lost their jobs as a result of non-essential business closures initiated over the outbreak.
Earlier Tuesday, US President Donald Trump called on lawmakers to approve the deal, tweeting, “The longer it takes, the harder it will be to start up our economy. Our workers will be hurt!”
In a follow-up tweet, the commander in chief stressed that Americans want to return to work, and that Congress “must act now” in order for the US and its economy to “come back strong.”
— Donald J. Trump (@realDonaldTrump) March 24, 2020
Top Democrats and Republicans have remained overwhelmingly optimistic about passing the financial stimulus bill, with both Senate Majority Leader Mitch McConnell (R-KY) and Senate Minority Leader Chuck Schumer (D-NY) indicating that negotiations are closing in on a touchdown for Americans.