However, expectations that the stimulus bill talks may extend into Wednesday morning due to the two parties working through the text and hashing out the final details, may be weighing on the USA indexes during Wednesday's pre-market session. Eastern time. Earlier in the day, it was down as much as 1.6 per cent.
The U.S. government bond market appeared to stabilize, with the yield on the 10-year Treasury note edging up to 0.853%, from 0.813% Tuesday. Overall, more than 111,000 have recovered. Within the first 30 minutes of trading, it was up as much as 2.2% and down as much as 0.7%.
For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough, that clear up in two to three weeks. Severe illness including pneumonia can occur, especially in the elderly and people with existing health problems.
With widening swaths of the economy shutting down and layoffs mounting, economists are sure a steep drop-off is coming.
At 13:11 p.m. ET the Dow Jones Industrial Average .DJI was up 1,491.90 points, or 8.02%, at 20,083.83, the S&P 500 .SPX was up 153.38 points, or 6.86%, at 2,390.78 and the Nasdaq Composite .IXIC was up 394.84 points, or 5.76%, at 7,255.52.
"People have to contend with the idea that the longer that lasts, the more people potentially are losing their job", said Yousef Abbasi, director of USA institutional equities at INTL FCStone.
It cost $105,300 a year to protect $10 million of USA investment-grade bonds against default for five years on IHS Markit's CDX index, which is down marginally from Tuesday's close, and still significantly lower than Friday's $151,000. Rallies almost as big as this have punctuated the last few weeks, none lasting more than a day.
US futures edged lower, however, raising uncertainty over what the day may bring. "So to see a sustainable rally at this point, is going to be very hard".
S&P 500 futures (ES=F): 2,457.75, up 19.75 points or 0.8%.
Royal Caribbean Cruises and Norwegian Cruise Line Holdings each rallied about 23%.
Nike Inc rose 9% after the sportswear giant beat quarterly revenue estimates and said sales in China were rebounding, helped by online orders. The company said it will follow a similar playbook in other countries as the outbreak has spread around the world.
In fact, all three main U.S. stock indexes jumped by more than 8%, bouncing back from another brutal selloff on Monday as the virus outbreak forced entire nations to shut down.
European markets ended with sizable gains. Germany's DAX was up 0.7 per cent and the French CAC 40 was up 3.3 per cent. Asian markets rose broadly, led by an 8% jump in Japan.
Some investors believed the stock market was overdue for a big bounce, having priced in a worst-case scenario regarding the economic damage being done by coronavirus-related shutdowns. The yield on the 10-year Treasury inched up to 0.82% from 0.81% late Tuesday, and the two-year yield slipped to 0.35% from 0.37%.