Marathon Oil MRO and other energy stocks on Tuesday rallied as oil prices rebounded on news the Trump administration is discussing plans to cut payroll taxes to bolster the economy amid the coronavirus outbreak.
At last check Marathon Oil jumped 28% to $4.66 a share to lead the rally.
Brent-crude futures were up 4% to $35.80 a barrel and West Texas Intermediate climbed 5% to $32.65 a barrel.
Marathon Oil will slash spending on new drilling and oil exploration in a bid to "defend our cash-flow generation, protect our balance sheet, and fund our dividend," President and CEO Lee Tillman said in a statement.
Other energy stocks also surged after taking big hits on Monday, when oil prices plummeted 25% following a surprise price cut by OPEC over the weekend.
Occidental Petroleum (OXY) - Get Report surged 24% to $15.45 a share after its shares plunged more than 52% on Monday. Apache Corp. (APA) - Get Report jumped 20% to $11.43 a share after shedding 53% of its value the day bef ore.
The three oil giants had also taken double-digit hits to their stock prices on Monday, with Shell leading the way down with an 18% decline.
The Dow Jones Industrial Average tumbled more than 2,000 points, or 7.78%, on Monday, with the rout triggered by OPEC's sudden price cut amid a brewing war for market share between Saudi Arabia and Russia.