Dow Jones sees record jump on Tuesday amid roller coaster month

Marco Green
March 25, 2020

All three main USA stock indexes jumped more than 5%, bouncing back from a brutal selloff in the previous session on fears of a deep global recession as entire nations shut down to prevent the virus from spreading.

The Dow Jones Industrial Average has been on a wild ride in recent weeks, with record drops and record gains becoming the norm.

At 04:44 GMT, the benchmark June E-mini S&P 500 Index is trading 2389.00, down 49.00 or -2.01%. The Nasdaq Composite gained 335.47 points, or 4.89%, to 7,196.15 at the opening bell.

Just after 7.15 the ASX 200 futures was up 278 points, or around 7%.

Oil, gold, silver, copper and iron ore all rose, while the Aussie dollar ended over 59 USA cents and 10-year U.S. bonds were trading around a yield of 0.87% and Aussie 10 year bonds were at the same level. The price action suggests investors are still paying close attention to the headlines about US lawmakers closing in on a massive fiscal stimulus bill work $2 trillion to combat the economic damage from the pandemic.

A separate proposal in the U.S. House of Representatives to grant airlines and contractors a $40 billion bailout lifted the S&P 1500 airlines index .SPCOMAIR by 17.22%.

Tuesday's point gain followed a dark day for Wall Street, as Monday saw a 600 point plunge after the stimulus package failed to gain approval for the second time.

Still, there were broad gains on Wall Street as the S&P energy index rose almost 10%, the most among the 11 major sectors, tracking a surge in oil prices.

The real estate sector was boosted by a 12% rise in Goodman Group securities and an 18% rise for GPT. Chevron shares jumped 18% on Tuesday. Both European and Asian markets also reported huge gains Tuesday as a result of the US Federal Reserve's actions to assist the economy and news of Italy experiencing a slowdown of its COVID-19 infection rate. Commonwealth Bank and ANZ rose more than 5%, Westpac was up more than 2% and the NAB gained3.75%. As of Wednesday morning, it was still hovering around a still-high 60 level.

On US stock markets, Norwegian Cruise Line Holdings and American Airlines were among the companies posting the biggest gains, rising 42% and 36% respectively.

Other reports by Click Lancashire

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