The Dow Jones finished on a 4.89% rebound at 25,018.16 points.
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Wall Street took off on Tuesday, rebounding sharply in the aftermath of the heaviest drop in New York indexes since 2008 with hopes of economic support in the United States to deal with the impact of the coronavirus.
Its flagship index, the Dow Jones Industrial Average, rose 4.89% to 25,018.16 points.
The highly technological Nasdaq took 4.96% to 8,344.25 points. The broad S&P 500 index gained 4.94% to 2,882.23 points.
Despite this clear advance, the New York indices played on the roller coaster on Tuesday, starting up sharply, then falling back towards mid-session before finishing in a torrid manner.
According to Karl Haeling of LBBW, “This reflects the high level of uncertainty in the market. It doesn’t take operators a lot to panic or, on the contrary, get excited. “
Monday, the New York place had tumbled, panicked by the oil crash, which had seen black gold fall by about 25%, as well as by the global spread of the coronavirus and its economic effects.
These fears were far from dispelled on Tuesday as “no one knows how much business revenue will be affected,” said Haeling.
But investors seemed somewhat reassured by the prospects for economic support measures mentioned by the White House.
According to the CNBC financial news channel, the American president on Tuesday proposed the abolition of social charges and contributions until the end of the year during a meeting with republican elected officials.
“There is a feeling that the worse the virus gets, the stronger the supports will be,” said Haeling.
Donald Trump also urged the Fed again to lower interest rates, calling the US central bank on Twitter “shabby” and “slow.”
The institution is scheduled to hold its next monetary policy meeting next week and investors anticipate further overnight rate cuts after the surprise half-point cut announced last Tuesday.
In the bond market, the 10-year rate on US debt, which had hit its historic low the previous day, rose sharply, standing at 0.7808% around 20.25 GMT.
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