NEW YORK -- After a tumultuous day of trading, the Dow Jones Industrial Average closed more than 1,000 points higher Tuesday, one day after the market suffered the worst session since the financial crisis in 2008.
Stocks saw a 900-point rally in the morning, only to dive back into negative territory as investors nervously awaited news of a stimulus plan from Washington to cushion the blow of the new coronavirus.
After President Donald Trump visited Capitol Hill to discuss a stimulus package with Senate Republicans, and told reporters that he had a "great meeting," stocks rose again heading into the end of trading. The Dow closed 1,167 points or 4.9% higher at 25,018.
On Monday, Trump had said he would develop payroll tax cuts and aid for industries hit hardest by the new coronavirus, such as airlines, cruises and hotels. The president is expected to announce details of the stimulus Tuesday evening.
The broader S&P 500 also bounced between positive and negative territory before closing 4.9% higher at 2,882. The Nasdaq Composite ended 5% higher.
U.S. airlines had a brief rally Tuesday morning in anticipation of possible stimulus for the sector.
American Airlines opened 7.3% higher, despite its announcement before market open of a 55% reduction in trans-Pacific capacity during the summer peak period and a 7.5% cut to domestic capacity in April. The company has lost about half of its value over the past month.
Delta Air Lines opened 4.7% higher after warning of a 65% reduction in Pacific capacity, part of a 15% overall capacity cut.
The Dow closed down 2,013 points, or 7.8%, in Monday's sell-off, which included a 15-minute pause in trading as the plunge initiated a circuit breaker. The S&P 500 fell 7.6%.
Major hotel stocks Hilton, Marriott, Wyndham and Hyatt were up 4% or more Tuesday before the volatility hit. Hyatt last week withdrew its 2020 outlook, citing the coronavirus.
Trump on Tuesday morning again called on the Federal Reserve for further rate actions, after the central bank cut interest rates by 50 basis points early last week.
"Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations," Trump tweeted, not long before the Dow started plummeting.
The U.S. president maintained that his administration "has been doing a great job" in response to the coronavirus outbreak.
There are now 647 confirmed cases of COVID-19 in the U.S. -- more than tenfold the number a week ago -- according to the country's Centers for Disease Control and Prevention.