(NEW YORK) — The Dow Jones Industrial Average rebounded Tuesday, though not nearly enough to make up for the massive coronavirus-induced losses suffered Monday.
In an already volatile trading day, the Dow spiked more than 900 points or approximately 4.7% midday Tuesday. The index saw more than 500-point swings in the hours after it opened.
On Monday, the Dow suffered its worst day since the “Black Monday” crash of 1987, plunging nearly 3,000 points or 12.94%.
Trading in the S&P 500 and Nasdaq also stabilized, with both indices up by more than 6% during intraday trading. Both shed approximately 12% during Monday’s bloodletting.
The steep midday rally came after the Federal Reserve announced further intervention amid the coronavirus crisis, establishing a commercial paper fund to help support the flow of credit to U.S. households and businesses.
Hopes of a further stimulus package from the Trump administration also seemed to quell investors’ anxieties after the steep selloff Monday.
Economists at S&P Global announced Tuesday that they forecast a global recession will likely hit by the end of the year as a result of the COVID-19 pandemic.
“The initial data from China suggests that its economy was hit far harder than projected, though a tentative stabilization has begun,” S&P Global’s chief economist Paul Gruenwald said in a statement.
“Europe and the U.S. are following a similar path, as increasing restrictions on person-to-person contacts presage a demand collapse that will take activity sharply lower in the second quarter before a recovery begins later in the year,” Gruenwald added.
Premarket trading on equities saw heavy volatility Monday night and into Tuesday morning, especially after President Donald Trump tweeted that the U.S. will be “powerfully supporting” industries impacted by the economic fallout of the coronavirus outbreak.
Since the COVID-19 outbreak, the Dow has seesawed by more than 1,000 points and entered a bear market for the first time in 11 years. The S&P 500 and Nasdaq are also in bear market territory.
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