Dow seesaws, closes up 1,164 points in a rebound from Monday’s rout
- The Dow Jones Industrial Average recovers more than half from Monday losses
- Markets await President Donald Trump’s proposal of a ‘very substantial’ payroll tax cut and legislation to protect hourly wage workers
The Dow Jones Industrial Average closed up 1,164 points, or 4.8 per cent, on Tuesday after seesawing drastically during the day as traders sought to recover from Monday’s massive losses when falling oil prices and spreading coronavirus fears roiled markets.
After incurring its largest point decline ever of 2,013 points on Monday, the Dow opened 3 per cent higher on Tuesday. It then dropped steadily in morning trading to a slight loss before staging a dramatic comeback in the session’s later hours, recovering more than half its Monday losses.
Similarly, the Standard & Poor’s 500-stock index and the Nasdaq composite each closed up nearly 5 per cent, after retreating in late morning trading to slight losses.
The yield on the US 30-year Treasury bill rose to 1.22 per cent, up from Monday’s historic low of 0.86 per cent.
The increase in the yield on the government debt indicated that investors have stopped piling into the safe-haven assets, a move that typically signals expected volatility and a pessimistic outlook for stocks.
