The Dow managed to regain over half of its historic Monday losses as it climbed an estimated 1167 points on March 10. The S&P 500 gained 135 points, while the Nasdaq climbed some 393 points on Tuesday.
During a March 9 press conference, Trump revealed that the federal government would be intervening to prevent the economic impact of the coronavirus on American citizens.
Following his meeting with Republican lawmakers on Tuesday, the US president offered little on the progress in bringing these proposals to reality, but did note that the payroll tax was "one of the things" discussed.
"I was just with the Republican senators and they were just about all there, mostly all there and there's a great feeling about doing a lot of the things," he told reporters Tuesday afternoon, according to Politico.
“Today’s trading activity is the market trying to gauge whether the stimulus is going to be sufficient,” Brent Schutte, the chief investment strategist for Northwestern Mutual Wealth Management told CNBC.
He described Trump's proposed stimulus as the "antidote that can bridge the gap between what was happening before coronavirus and what will happen after it."
At the same time, Paul Winfree, Trump's former deputy director of the Domestic Policy Council, told Politico that Trump's proposed payroll tax cut may help the stock market, but it will do little to fix the impact that the COVID-19 outbreak will have on the average individual.
“Furthermore, it won’t help people who either can’t work because they’re home sick or are caring for someone who is sick. Nor will further incentives for people to work through supply-side policies to help contain the coronavirus epidemic," he said.
Though less than 10,000 individuals have been tested for the novel coronavirus in the US, the Johns Hopkins University Center for Systems Science and Engineering has reported 808 confirmed COVID-19 cases in the US and at least 28 deaths related to the contagious disease.
Trump is expected to reveal more details on his economic response to the COVID-19 outbreak during the coronavirus task force media briefing at 5:30 p.m. local time. Wage relief for hourly workers, travel restrictions and the administration's approach toward the economic woes of the US travel industry are expected to be addressed.