The US markets ended higher on Tuesday reclaiming a chunk of the ground lost the previous session in the markets’ biggest one-day percentage drop since 2008. The strength on markets came after President Donald Trump's pledge to provide very substantial relief amid the economic fallout from the coronavirus outbreak. Trump said that he would be meeting with House and Senate Republicans today to discuss a possible payroll tax cut or other stimulus measures. The president said he would also talk with GOP lawmakers about getting help for hourly wage earners, hinting at providing paid leave to those affected by the coronavirus. Besides, a private report said that Trump proposed cutting the payroll tax rate to zero for the rest of 2020 may have contributed to the renewed buying interest.
Besides, Monday’s stock plunge was the result of fears that government attempts to contain the epidemic may shut down economic activity globally. At the same time, 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.
Dow Jones Industrial Average surged 1,167.14 points or 4.89 percent to 25,018.16, Nasdaq gained 393.58 points or 4.95 percent to 8,344.25 and S&P 500 was up by 135.67 points or 4.94 percent to 2,882.23.
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