Markets

Here's what happened to the stock market on Tuesday

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Traders work the floor at the NYSE in New York.
Brendan McDermid | Reuters

Dow Jones Industrial Average surges 407.82 points

The Dow jumped 407.82 points, or 1.4% to 28,807.63. The S&P 500 gained 1.5% to end the day at 3,297.59. The Nasdaq Composite advanced 2.1% to a record close of 9,467.97. Stocks surged for a second day, making up even more ground from last week's steep sell-off.

Stimulus > coronavirus?

The number of confirmed coronavirus cases kept rising, but the prospects of more monetary stimulus out of China helped soothe worries about the virus' effect on the global economy. Reuters reported the People's Bank of China is mulling over lowering reserve requirement ratios for banks as well as cutting a key lending rate. At the same time, the economic data released this week has given some investors optimism that the economy remains stable. However, if the virus is not contained and it puts pressure on the economic data, stocks could slide once again.

Tesla surges to record, coronavirus names recover

Tesla shares ended the day up 13.7% after soaring as much as 23% at one point Tuesday. Stocks impacted by coronavirus fears recovered, with American and Delta Air Lines climbing 5% and 3.3%, respectively. Micron gained 3.2% while Apple advanced 3.3%.

What happens next?

ADP and Moody's Analytics will release their latest private payrolls data on Wednesday morning. The ISM nonmanufacturing index is also set for release along with Merck earnings. Read more here.

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