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Dow surges as investors weigh Biden wins, interest rate cuts

U.S. stocks rose Wednesday as investors weighed a big night for former Vice President Joe Biden in the Democratic primaries and the economic impact of the coronavirus outbreak. 

The Dow Jones industrial average rallied 550 points while the Standard & Poor’s 500 climbed 1.8%. The Nasdaq Composite rose 1.5%. 

Biden capped a strong Super Tuesday by winning Texas, the third-largest overall prize in the Democratic primaries, and at least eight other states. Bernie Sanders, a strong critic of Wall Street, won the biggest prize of Tuesday’s primaries with a victory in California. 

Many investors fear a Sanders’s nomination as the Democratic presidential candidate because his economic proposals are not viewed as business friendly. The strong showing from Biden on Tuesday and in primaries ahead could reduce those fears.

The gains came following a day of wild swings Tuesday after a surprise decision by the Federal Reserve to cut interest rates by half a percentage point. The move was aimed at defusing fears the coronavirus outbreak might stunt global economic activity.

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