Stocks finished higher Tuesday after the Trump administration said it was looking into sending checks to Americans to help them during the coronavirus outbreak.
“Americans need cash now, and the president wants to give cash now. And I mean now, in the next two weeks,” Treasury Secretary Steven Mnuchin said Tuesday at a White House briefing.
Mnuchin also said the federal government would postpone the tax filing deadline of April 15 by 90 days.
The Treasury secretary also said the government intends to keep stock markets operating but could shorten trading hours.
The Dow Jones Industrial Average finished up 1,048 points, or 5.19%, to 21,237, the S&P 500 rose 6% and the Nasdaq was up 6.23%.
Stocks partly rebounded after they fell on Monday by the most in 30 years as Wall Street's concerns about a recession rose despite intervention by the world's central banks.
New York Mayor Bill de Blasio said late Tuesday that residents should prepare for the possibility of a shelter-in-place order to be announced in the next 48 hours.
Wall Street also got a lift Tuesday from the Federal Reserve's pledge to support yet another portion of domestic credit markets Tuesday with a $10 billion backstop designed to help liquidity in commercial paper trading.
The Fed said it would create a so-called special purpose vehicle, under the direction of the Treasury, to buy short-term, high-quality unsecured debt issued by companies that form an important part of the overall financing system's credit markets.
The S&P 500 on Monday fell 12% and closed at its lowest level since December 2018. The Dow fell nearly 13%, or 2,997 points, and tumbled to the lowest since February 2017.
The Fed slashed interest rates on Sunday in an emergency move, but the action did little to calm investors' worries that growth in the U.S. and the world would be crimped drastically by the coronavirus, which continues to spread and take lives.
Even President Donald Trump - who often touted the stock market's gains during his presidency - said Monday the United States could tip into a recession because of the coronavirus.
"Well it may be," Trump said about the chances of a recession. "We're not thinking in terms of recession, we're thinking in terms of the virus."
Economists at S&P Global on Tuesday forecast a global recession in 2020.
“The sudden economic stop caused by Covid-19 containment measures will lead to a global recession this year,” S&P Global said in its report.
The economists estimate global GDP growth this year at 1% to 1.5%.
Trump suggested the U.S. could be confronting the coronavirus outbreak until August or longer.
The number of confirmed global cases of the coronavirus has risen to 195,892, according to the Johns Hopkins Center for Systems Science and Engineering, and deaths increased to 7,865.
The U.S. has 5,702 cases of the virus and deaths have climbed to about 95.
Boeing (BA) - Get Report has asked the White House and officials in Congress for short-term aid for itself, suppliers and airlines as the travel industry takes a serious blow from the coronavirus outbreak, Bloomberg reported, citing people familiar with the matter.
The U.S. plane producer is seeking to avoid layoffs and damage to hundreds of smaller companies that make parts and systems for its aircraft, the people said.
Airlines for America, a trade group that represents the largest U.S. carriers, is seeking $50 billion in loans and grants and deeper tax breaks for commercial airlines in order to weather the coming months and the travel restrictions put in place to combat the spread of the coronavirus. A4A also wants another $8 billion in support for the air cargo industry.
Nordstrom (JWN) - Get Report said Tuesday it was closing all its 380 stores in the U.S. and Canada for two weeks, joining other retailers that are taking the unprecedented move of shutting their retail operations to help limit the spread of the coronavirus.
"We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year," the company wrote in a blog post. Amazon said it welcomed laid-off or furloughed workers, especially in the hospitality, restaurant, and travel businesses, that have lost their jobs to apply for these positions.
McDonald's (MCD) - Get Report warned the financial blow from the coronavirus pandemic to its earnings can't be reasonably estimated because it doesn’t know the duration and scope of disruptions to its business. On Monday, the hamburger giant said it would close dining rooms in the U.S. at its company-owned locations.