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Dow soars over 11% in strongest one-day performance since 1933

Stock MarketsMar 24, 2020 06:35PM ET
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© Reuters. Traders work on the floor of the NYSE in New York

By Noel Randewich

(Reuters) - The Dow soared on Tuesday to its biggest one-day percentage gain since 1933, after U.S. lawmakers said they were close to a deal for an economic rescue package in response to the coronavirus outbreak, injecting optimism following the biggest selloff since the financial crisis.

All three main U.S. stock indexes rebounded strongly from Monday's brutal selloff as the coronavirus outbreak forced entire nations to shut down.

Senior Democrats and Republicans said they were close to a deal on a $2 trillion stimulus bill, aimed at providing financial aid to Americans out of work and help for distressed industries.

The expected legislation adds to aggressive action announced by the Federal Reserve in recent days, including purchase of corporate bonds and announcing that the U.S. central bank will make direct loans to companies.

King Lip, chief investment strategist at Baker Avenue Asset Management in San Francisco, said expectations on the stimulus bill were driving optimism on Wall Street, but said his firm was still waiting to buy back into the market.

"With all of this stimulus, we just need a catalyst to spark the fire," Lip said. "That spark will be a peaking of the cases, and when it starts to come down, I think that's when everything gets lit up."

Investors were also pleased after President Donald Trump said on Monday he was considering how to restart parts of business life when a 15-day shutdown ends next week, even as the highly contagious virus spreads rapidly and poorly equipped hospitals struggle with a wave of deadly cases.

A separate proposal in the U.S. House of Representatives to grant airlines and contractors a $40 billion bailout lifted the S&P 1500 airlines index <.SPCOMAIR> by 15%.

The severity of the spread of COVID-19 and expectations of aggressive stimulus measures have whipsawed financial markets and ended Wall Street's 11-year bull run.

Boeing Co (N:BA) powered the Dow's gains, jumping nearly 21% after Chief Executive Dave Calhoun said the planemaker expected the 737 MAX jet to return to service by mid-year. Its shares have lost nearly two-thirds of their value so far in 2020.

Data on Monday showed U.S. business activity hit a record low in March, bolstering expert views that the economy was already in a recession.

Traders were still weighing the uncertainty of the path of the coronavirus outbreak.

"We don't know how long it's going to take to peak. We don't know how to treat it. We don't have a vaccine. So all of those uncertainties are causing a myriad of aftershocks," said Nancy Perez, senior portfolio manager at Boston Private Wealth in Miami.

The Dow Jones Industrial Average (DJI) soared 11.37% to end at 20,704.91 points, while the S&P 500 (SPX) jumped 9.38% to 2,447.33. The Nasdaq Composite (IXIC) rallied 8.12% to 7,417.86.

The S&P energy index (SPNY) jumped 16.3%. The big banks index <.SPXBK> jumped about 13%, tracking an increase in U.S. government bond yields. [US/]

Just 11 S&P 500 stocks ended lower.

Advancing issues outnumbered declining ones on the NYSE by a 8.53-to-1 ratio; on Nasdaq, a 6.22-to-1 ratio favored advancers.

The S&P 500 posted no new 52-week highs and four new lows; the Nasdaq Composite recorded four new highs and 85 new lows.

Volume on U.S. exchanges was 15.3 billion shares, compared to the 15.9 billion-share average for the full session over the last 20 trading days.

Dow soars over 11% in strongest one-day performance since 1933
 

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Comments (12)
Nick Deromeo
Nick Deromeo Mar 24, 2020 7:54PM ET
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Corruption? Manipulation? Deceit? Or all of the above?
Thang Do
Thang Do Mar 24, 2020 7:54PM ET
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Bill said Life is not fair. This is a no fair game. never ever. accept it
Peter Dikeakos
Peter Dikeakos Mar 24, 2020 5:59PM ET
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Compared to 1933...that was depression era. Good or bad.
Thang Do
Thang Do Mar 24, 2020 5:59PM ET
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media is a powerful tool for 1%. before, now, and after?!
Max German
MaxiGE Mar 24, 2020 3:05PM ET
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always hope
Mario Rossi
Mario Rossi Mar 24, 2020 10:41AM ET
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At what time do they vote?
Sandeep Mangal
Sandeep Mangal Mar 24, 2020 10:33AM ET
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this time we are confused
Magno Fernandes
Magno Fernandes Mar 24, 2020 7:28AM ET
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The casino is open. Lost your Money buying news.
David David
David9 Mar 24, 2020 7:24AM ET
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Time to squeeze those juice on the shorts.
Chong Wee Jye
Chong Wee Jye Mar 24, 2020 7:24AM ET
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Haha
Rick Lai
Rick Lai Mar 24, 2020 7:07AM ET
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Markets are always controlled by Monopoly. it could not be explained why the PMI figures from Europe are horrible while all the indexes are more than 5% up.
amir salehi
amir salehi Mar 24, 2020 7:07AM ET
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can you give examples for Monopoly?!
Elvis Durant
Elvis Durant Mar 24, 2020 7:07AM ET
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manipulation!
Chong Wee Jye
Chong Wee Jye Mar 24, 2020 7:07AM ET
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no no nothe trend is your friend
amir salehi
amir salehi Mar 24, 2020 7:06AM ET
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I think rising future market can be a good signal for money market
ben liu
ben liu Mar 24, 2020 6:39AM ET
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Although both stock futures touched upper limits now, I predict Monday stock index will remain steady concerning the yet outcome of rescue bill vote this week.
Ernie Keebler
Ernie Keebler Mar 24, 2020 6:31AM ET
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I suppose ya think the market should only be allowed to go up and never down, then you don't want a market, you want a forever expanding bubble.
Sal Pppp
Sal Pppp Mar 24, 2020 6:31AM ET
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So sorry for you lmao
Quentin Nadal
Quentin Nadal Mar 24, 2020 6:23AM ET
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Y are there upper limits
Buzzy Jefferson
Buzzy Jefferson Mar 24, 2020 6:23AM ET
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or at least why aren't the up limits greater than 5%?
 
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