New York, N.Y. (PPD) — The Dow Jones Industrial Average (^DJI) roared more than 5% higher on Tuesday. The rally comes just one day after the index suffering its largest point drop on record and the second largest percentage drop.
The Dow closed up +1,048.79, or 5.19% higher at 21,237.31. That coups a little less than half the losses from Monday, when it closed down −2,997.10, or 12.93% at 20,188.52.
The percentage drop was rivaled only by Black Monday in 1987. It was filled largely by negative data out of China. The SSE Composite Index (^SSE) was down -98.18, or -3.40% to ¥2,789.25.
The National Bureau of Statistics reported data on Monday showing the “devastating” impact on the Chinese economy due to the coronavirus outbreak. Analysts warn the damage to the world’s second largest economy is likely far worse than initial indicators suggest.
But American markets surged at the opening bell and ticked higher on the daily press briefing from President Donald Trump and the Coronavirus Task Force.
U.S. Treasury Secretary Steve Mnuchin said the press conference that the Federal Reserve in conjunction with the U.S. Treasury Department will guarantee A1 P1 Commercial Paper.
It is a money-market security issued (sold) by large corporations in order to obtain funds to meet short-term debt obligations, to include payroll.
“Everything is going to come back,” the president vowed at the presser. “A life cannot come back. Our economy is going to come roaring back.”
The S&P 500 (^SPX) closed up +143.06, or 6.00% to 2,529.16. That’s a recovery of just over half the losses from Monday, when it was down −324.89, or 11.98% to 2,386.13.
The Nasdaq Composite (^IXIC) closed higher +430.19, or 6.23% to 7,334.78. That’s also about half the previous day’s losses, when it closed down −970.28, or 12.32% to 6,904.59.
The Russell 2000 (^RUT) closed up +61.60, or 5.94% at 1,099.02.