Dow sees biggest 1-day gain since 1933

  • Dow sees biggest 1-day gain since 1933

Dow sees biggest 1-day gain since 1933

(MENAFN - The Dow Jones Industrial Average soared on Tuesday, logging in its best day in 87 years as investors hoped USA lawmakers were close to an agreement on a stimulus bill to rescue the economy from the damage caused by the coronavirus.

Tokyo share prices were boosted by the decision to postpone the 2020 Olympics to July 2021 in view of the coronavirus pandemic, which has brought travel nearly to a standstill and is leaving many millions of people ordered to stay home to help contain the outbreaks. With billions of dollars already lost owing to the pandemic, companies now have started looking up to the government for aid to survive the crisis that may continue to impact economies across the globe for years to come.

Volume on the New York Stock Exchange totaled 6.28 billion shares with 2,756 issues advancing, one setting a new high, and 279 declining, with 85 setting new lows.

All three main US stock indexes jumped more than 5%, recovering from a brutal selloff in the previous session as the virus outbreak forced entire nations to shut down.

As of 1147 GMT, futures on the S&P 500 are 106.5 points higher at 2,327.0, alongside a 864 point jump for those tracking the Dow Jones Industrials to 19,361.

The S&P 500 is up 142.41 points, or 6.2%.

It was the Dow's biggest single-day jump in points since March 1933. Both European and Asian markets also reported huge gains Tuesday as a result of the US Federal Reserve's actions to assist the economy and news of Italy experiencing a slowdown of its COVID-19 infection rate.

At 04:44 GMT, the benchmark June E-mini S&P 500 Index is trading 2389.00, down 49.00 or -2.01%.

In Asia, Japan's Nikkei soared 7.1 percent, Hong Kong's Hang Seng spiked 4.5 percent and China's Shanghai Composite gained 2.3 percent.

Stock Index ETFs are echoing the charge higher, with the SPDR S&P 500 ETF Trust (SPY) up a massive 8.71%.

Gains were broad based, with advancers leading decliners on the NYSE by 12 to 1, possible evidence that today's rebound might last more than just one day.

The rally followed a plunge on the major averages Monday despite the Federal Reserve announcing it would buy unlimited amounts of assets to support the economy.

What will the stimulus include? Also, $4.5 billion is likely to be allocated for the Centers for Disease Control and Prevention.

Some investors see "a lose-lose situation", said Michael O'Rourke, chief market strategist at Jones Trading. Shares in coal miner, New Hope rose 17.2% despite a weak interim profit and smaller dividend while Woodside shares enjoyed a rare rise of 5.6%.