Dow sees biggest 1-day gain since 1933

Andrew Cummings
March 25, 2020

At the close, the Dow Jones Industrial Average had risen by 11.4 percent to 20,704.91, its biggest one-day percentage increase since 1933.

The tech-rich Nasdaq gained 8.1 per cent to close at 7,417.86, while the broad-based S&P 500 finished the day at 2,447.33, a gain of 9.4 per cent.

Early Monday, however, there was a spike in premarket trading after the Fed announced a series of additional measures to juice the economy.

In a note on Tuesday, Murphy wrote, "It is important to remember that some of the largest one?day rallies in SPX's history took place during bear markets, implying that one day pops are not uncommon in a down market".

In the United States, congressional leaders said they were close to a deal on a relief package worth more than $1.8tn, which would include money to bailout industries that have been affected by the crisis. Nasdaq-100 futures were up 1.5%.

The coronavirus stimulus package has failed to clear the Senate twice since Sunday after House Speaker Nancy Pelosi raised an objection to the bipartisan bill at the eleventh hour, attempting to replace it with her party's own, much longer version of the legislation.

Some investors in Asia are buying stocks for the first time in weeks, according to Catherine Yeung, investment director at Fidelity International in Hong Kong.

The action in the futures market followed an epic comeback on Wall Street. This was a machine driven rally, just like the sell-offs...

However, expectations that the stimulus bill talks may extend into Wednesday morning due to the two parties working through the text and hashing out the final details, may be weighing on the USA indexes during Wednesday's pre-market session. "I want to wait to see".

Data on Monday showed US business activity hit a record low in March, bolstering expert views that the economy was already in a recession. More than 400,000 cases have been confirmed worldwide, including over 50,000 in the US, according to Johns Hopkins University.

Total coronavirus cases in the USA exceeded 55,200 with around 800 deaths.

Some investors believed the stock market was overdue for a big bounce, having priced in a worst-case scenario regarding the economic damage being done by coronavirus-related shutdowns.

-CNBC's Jesse Pound contributed reporting.

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