U.S. stocks soared Monday as Senate Republicans and Democrats closed in on a $2 trillion relief bill aimed at combating the economic damage of the coronavirus.
The Dow Jones Industrial Average closed 11.40% higher, moving above 20,000 points. It was the biggest one-day gain for the index since 1933, according to the Wall Street Journal.
The S&P 500 and the Nasdaq composite also closed up 9.34% and 8.12%, respectively.
Senate Minority Leader Chuck Schumer predicted lawmakers would reach a bipartisan deal Tuesday on the relief bill.
“Of the few outstanding issues, I don’t see any that can’t be overcome within the next few hours,” said Schumer, a New York Democrat.
Stocks have undergone enormous volatility during the pandemic, and they are down roughly 30% from all-time highs.
The Dow finished Monday 3% lower, or more than 580 points. The S&P 500 and the Nasdaq composite on that day also closed down 2.9% and 0.35%, respectively.
Stocks fell at opening Monday despite the Federal Reserve’s announcement earlier that morning that it would buy an unlimited number of bonds to counter the effects of the coronavirus pandemic.
Oil prices on Tuesday closed up, 2.18% for a barrel of WTI Crude. Brent Crude was also up 1.19%.
The yield on the 10-year Treasury bond was up but still below 1%, at 0.83%.
