(NEW YORK) — The Dow Jones Industrial Average saw a nearly 1,000-point swing during a volatile trading session on Tuesday, as the novel coronavirus continues to send U.S. financial markets reeling.
The Dow spiked more than 800 points, or 3%, shortly after markets opened Tuesday, a possible sign that investors are welcoming President Donald Trump’s pledge to intervene as the economy gets battered by the outbreak. Early Tuesday, the S&P 500 and Nasdaq both gained approximately 3%.
By mid-day, however, the Dow plummeted, wiping out all of its early morning gains. The S&P 500 and Nasdaq also pared back gains during intraday trading.
Tuesday’s drop comes after financial markets suffered a historic sell-off on Monday. Markets plunged enough to trigger a rare automatic halt to trading early Monday. By closing time, the Dow was down more than 2,000 points, or 7.8%. The S&P 500 fell 6.63% and the Nasdaq slipped 7.29%.
After the market rout, Trump made a brief appearance at the White House’s coronavirus press conference, touting an upcoming economic relief plan.
The president said he would meet with Senate Majority Leader Mitch McConnell and other Republican leaders to discuss economic relief proposals, including a payroll tax cut and loans for small businesses, in order to combat financial hardships that could result from the coronavirus. Trump promised more details Tuesday after the meeting.
Monday’s market losses were also in part triggered by an oil price war that began Sunday evening after OPEC talks fizzled and Saudi Arabia ended up slashing its oil prices, resulting in U.S. crude oil prices plunging by more than 25%. On Tuesday, U.S. oil prices rallied by approximately 8%.
It’s been a volatile few weeks for markets amid uncertainty over the economic impacts of the COVID-19 outbreak. As the markets seesaw and daily headlines induce anxiety, experts say everyday investors should keep their gaze focused on the long term.
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