US stocks rise as Trump administration announces stimulus package plans after Dow’s biggest point drop on coronavirus worries
- US stocks rise to recover from worst day since ‘Black Monday’ in 1987
- Investors look to stimulus plans for confidence boost
US stocks rose on Tuesday, a day after the Dow Jones Industrial Average plunged nearly 3,000 points for its largest point drop in history, as the government announced plans to stabilize the economy against the worsening coronavirus outbreak.
The blue-chip index gained 1,048.86 points, or 5.2 per cent, while the S&P 500 stock index was up 6 per cent and the Nasdaq jumped 6.2 per cent, recovering from the Dow’s worst percentage drop since “Black Monday” in 1987.
The markets fluctuated drastically, opening up nearly 2 per cent for all the indices, only to quickly lose momentum 10 minutes into the session.
They have since flip-flopped between positive and negative territory in the morning session and staged a steady upward momentum as US President Donald Trump and the White House Task Force began the briefing on the government’s latest efforts to contain the virus and stabilize the economy.
The Trump administration said on Tuesday that it was proposing a massive stimulus package to prop up the economy that could include cash payments to Americans.