U.S. stocks rose sharply on Tuesday morning, following the worst one-day selloff on Wall Street since 2008. The Dow Jones Industrial Average rose 805 points, or 3.4%, following a drop of 2,013 points on Monday. The S&P 500 Index rose 95 points, following a 225 point-drop, and the Nasdaq Composite Index rose 293 points, following a 624 point drop.
Stock-index futures found support late Monday after President Donald Trump said in a White House news conference that he would seek payroll tax relief and other measures to help businesses deal with the coronavirus outbreak. Trump said he would announce more details Tuesday, and discuss “a possible payroll tax cut or relief, substantial relief, very substantial relief, that’s big, that’s a big number,” the Associated Press reported. However, administration officials said the White House wasn’t ready to roll out specific economic proposals, CNBC reported early Tuesday, citing administration officials.
Monday’s stock plunge was the result of fears that government attempts to contain the epidemic are also shutting down economic activity globally, while the biggest one day fall in crude oil prices since the 1991 Gulf War, after Saudi Arabia and Russia began a price war last Friday, also raised fears of a credit crisis in the energy industry.
