Dow surges to best day since 1933 on hopes for coronavirus stimulus

Twitter suspends travel as companies grapple with coronavirus

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The Dow Jones industrial average rebounded Tuesday, posting its biggest one-day gain in nearly 90 years on hopes that Congress would pass a stimulus bill to shield the economy from the coronavirus pandemic. 

The blue-chip average surged more than 2,100 points, or 11.4%, to close at 20,704.91, its largest percentage gain since March 1933 after slumping to a three-year low a day earlier. The Standard & Poor’s 500 jumped 9.4% to end at 2,447.33, its biggest gain since October 2008.

Following a turbulent start to the week, stocks stabilized and Treasury yields rose in a sign that investors are feeling less fearful as Congress was nearing a rescue plan that could inject $2 trillion into the economy. The measure is designed to provide direct payments of $1,200 to most Americans, help small businesses shuttered across the country and aid the hard-hit travel industry.

To be sure, the market has seen rebounds like this before, only for them to wash out immediately. Since stocks began selling off on Feb. 20, the S&P 500 has had six days when it’s risen, and all but one of them were big gains of more than 4%. After those rallies, stocks fell an average of 5% the next day.

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By Javier Manning

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