Markets starved for good news shot up Tuesday on faith that the stimulus was almost a given. The Dow Jones industrial average surged 2,112.98 points, or 11.4 percent, and pulled itself back above the 20,000 mark. The Dow finished the day at 20,704.91, its best day since 1933 and fourth best ever. The Standard & Poor’s 500 index jumped 9.4 percent to 2,447.33. That is the broad market’s best day since 2008. The tech-heavy Nasdaq composite jumped 8.1 percent, to 7,417.86.
“It’s too early to be blindly optimistic, but the size and pace of the policy responses to this crisis are very encouraging,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. “This is not a time to be heroes calling a market bottom, but we are keeping a close eyes on indications of light at the end of the tunnel.”
All 11 S&P sectors were positive, led by a beaten-down energy sector that had lost half of its value this year due to a collapse in oil prices. Energy posted a nearly 16 percent gain, led by oil giants such as Chevron.
Boeing, Home Depot, American Express, JP Morgan and Walt Disney — which have been savaged by the coronavirus restrictions — had big days on the Dow as optimism over the stimulus took hold. American Airlines led the airline sector with a 35 percent jump. The airline industry is anticipating a massive aid package from the legislation.
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