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Stocks rebound on stimulus hopes after worst day since 1987

Stocks stabilized Friday on hopes for a coronavirus aid package from Washington after Wall Street’s worst day since the “Black Monday” crash of 1987.

The Dow Jones industrial average climbed 200 points, a day after plunging 2,352 points, or 10%, for its worst loss since its nearly 23% drop on Oct. 19, 1987. 

The Standard & Poor’s 500 rose 1%. The broad index tumbled more than 20% from its February record Thursday, sliding into a bear market and officially ending Wall Street’s historic 11-year bull market run.

House Speaker Nancy Pelosi and the Trump administration hoped to announce agreement Friday on a virus aid package to reassure anxious Americans by providing sick pay, free testing and other resources in an effort to calm teetering financial markets and the mounting crisis.

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Treasury Secretary Steve Mnuchin struck a positive tone Friday morning, saying a deal on a virus response package with Congress was imminent.

“We’re very close to getting this done,” he told CNBC.

The New York Federal Reserve said Friday morning it would ramp up its Treasury bond purchases in a bid to help cushion the financial system. The central bank took steps Thursday to inject more than $1.5 trillion into the markets to help calm investors who are fearful of the economic impact of the virus. 

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