Dow posts best percent gain since 1933 on hopes of Coronavirus rescue package

Marketwatch reports U.S. stocks soared Tuesday, with the Dow Jones Industrial Average notching its biggest one-day point gain ever and its best percentage gain since 1933, a day after plumbing the lowest levels since 2016, amid growing optimism that Congress will come to an agreement on a fiscal stimulus package aimed at combatting the economic impact of the coronavirus epidemic.

How did benchmarks perform?

The Dow DJIA, +11.36% rose 2,112.98 points, or 11.37%, to close at 20,704.91, the S&P 500 index SPX, +9.38% advanced 209.93 points, 9.38%, to close at 2,447.33, and the Nasdaq Composite index COMP, 8.121% gained 557.18 points, or 8.12%, ending trading at 7,417.86.

For the year to date though, the Dow is down 27.45%, the S&P 500 has lost 24.25%, and the technology-heavy Nasdaq is 17.33% lower.

What drove the market?

U.S. lawmakers inched toward an agreement on a roughly $2 trillion coronavirus rescue package, helping to reignite buying on Wall Street for the moment, after lawmakers on Monday twice failed to reach an agreement, sending stocks into a fresh tailspin.

Senate Minority Leader Chuck Schumer said from the Senate floor that he had “very good” discussions with U.S. Treasury Secretary Steven Mnuchin, and just before noon claimed that an agreement was on the “two-yard line.” The trading day ended with no concrete next steps in place, but some investors suggested the market sell-off of the past few weeks may have been overdone.