Dow rises more than 1,000 points over coronavirus stimulus

The move comes after the index fell nearly 3,000 points on Monday

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New York Stock Exchange March 17, 2020
New York Stock Exchange March 17, 2020
(Spencer Platt/Getty Images)
Last Updated:
March 17, 2020 - 4:31pm

The Dow Jones Industrial Average soared more than 1,000 points Tuesday, rebounding from its worst point drop ever over signals that President Trump, Congress and the Federal Reserve were all working to shore up an economy paralyzed by the coronavirus.

Investors appeared bouyed that Trump and Congress were working on a massive stimulus package that could include immediate cash payments to most Americans.

"We are looking at sending checks to Americans immediately," Treasury Secretary Steve Mnuchin said. "And what we have heard from hardworking Americans, many companies have now shut down, whether it is bars or restaurants," he said. "Americans need cash now. And the president wants to get cash now. And I mean now in the next two weeks."

Meanwhile, the Fed took additional actions to shore up the financial system shaken by the pandemic.

"The Federal Reserve Board announced today that it will establish a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses," a Tuesday press release divulged.

The Fed on Sunday announced that it would slash interest rates, decreasing the target range for the federal funds rate to 0-0.25 percent. The Fed also said it will purchase at least $500 billion in Treasury securities and at least $200 billion in mortgage-backed securities in the months ahead.

The market improvement came on the heels of Monday’s historic plunge of nearly 3,000 points, the Dow’s largest point drop ever.

The index has been exhibiting wild volatility amid the global coronavirus health scare.