The Dow Jones Industrial Average surged more than 11% Tuesday as Congress and the White House neared a deal to inject nearly $2 trillion of aid into the coronavirus-ravaged economy.
The Dow ended the day up more than 2,000 points.
The huge gains on Wall Street followed a worldwide rally as a wave of buying interrupted what has been a brutal month of nearly nonstop selling. Despite the gains, investors were far from saying markets have hit bottom. Rallies nearly as big as this have punctuated the last few weeks, and none lasted more than a day.
Investors have been frustrated waiting for the U.S. government to do what it can to help the economy, which is increasingly shutting down by the day. But both Democrats and Republicans said Tuesday they’re close on a massive economic rescue package, which will include payments to U.S. households and aid for small businesses and the travel industry, among other things.
A vote in the Senate could come later Tuesday or Wednesday, and if approved, it would follow the latest round of extraordinary aid launched by the Federal Reserve on Monday.
“I don't think there's any more confidence in the fundamental outlook, but the fact that we're making progress is good news,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. “It’s sort of like, keep the patient alive in the emergency room so you can provide some treatment options.”