Updated at 12:51 p.m. ET
The Dow Jones Industrial Average surged more than 1,700 points, or 9.3%, as negotiations continued over a massive stimulus package to help the crippled economy deal with the coronavirus pandemic.
The S&P 500 soared 8.3%. That’s a rebound from Monday’s losses of about 3% for both the Dow and S&P 500.
The stock market has been falling for weeks as much of the global economy has been shut down in an effort to slow the spread of the coronavirus. The Dow has lost more than 9,200 points since it peaked on Feb. 12 — a staggering drop of 31%. The 11-year bull market — the longest in history — is now a distant memory.
There were signs that a stimulus deal in Congress was getting closer.
“I think there is real optimism we could get something done in the next few hours,” Pelosi said in an interview on CNBC. Sen. Chuck Schumer, the Senate’s top Democrat, said late Monday that he was “very, very close” to an agreement with the White House on a deal for emergency funding that could top $1 trillion.
On Monday, the Federal Reserve launched its latest effort to keep credit flowing and keep markets working smoothly.
Finance ministers and central bankers from the Group of Seven major industrialized nations pledged Tuesday to “do whatever is necessary to restore confidence and economic growth and to protect jobs, businesses, and the resilience of the financial system.”