Live updates on stock market and business news during the coronavirus outbreak.
Markets have been volatile in recent weeks, see-sawing on sentiment that has veered between hope that governments around the world will take strong measures to stem economic losses from the spread of the coronavirus, and fear that policymakers are not making bold enough decisions.
Senators and the Trump administration reached a deal early Wednesday on a huge stimulus bill that would help to provide a ballast for companies and industries hardest hit by the outbreak. It would also give money to Americans, many of whom have lost their jobs in recent days and weeks.
Elsewhere, governments have taken more concrete measures. On Monday, Germany prepared an emergency budget and rescue fund for companies and state-supported loans. European Union leaders are working on additional new measures to help loosen up money for some countries to help soften the economic blow of the virus.
Todays sharp equity rally shows that the combination of central banks entire Global Financial Crisis playbook and substantial, direct fiscal support can be well-received by markets, said Paul Haefele, chief investment officer at UBS Global Wealth Management, in a note to investors about Tuesdays performance on Wall Street.
Encouragingly, recent new lows in stocks have been accompanied by either sideways or even lower volatility, indicating markets are starting to become more comfortable with the potential range of outcomes we face, Mr. Haefele added.
The price of oil also jumped after a period of steep declines. The international benchmark, Brent crude, and the United States standard, West Texas Intermediate, both gained more than 3 percent.