Markets

Here's what happened to the stock market on Tuesday

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, January 24, 2020.
Lucas Jackson | Reuters

Dow Jones Industrial Average jumps 1,167 points

The Dow gained 1,167.14 points, or 4.89%, to close at 25,018.16. The S&P 500 advanced 4.94% to 2,882.23. The Nasdaq Composite jumped 4.95% to close at 8,344.25. Stocks traded wildly for most of Tuesday's session as Wall Street weighed the prospects of fiscal stimulus to stem an economic slowdown from the coronavirus.

Fiscal stimulus

President Donald Trump floated the he idea of "a payroll tax cut or relief" to offset the economic fallout from the coronavirus. However, administration officials told CNBC that the White House is not close to rolling out specific proposals to deal with a coronavirus-induced economic slowdown. CNBC later learned Trump pitched a 0% payroll tax rate for the rest of 2020. The uncertainty around fiscal stimulus left the major averages swinging in wide ranges throughout the session. The Dow, for example, was up more than 900 points at its session highs. At its lows of the day, the Dow was down 160 points. Bottom line: Investors want fiscal measures to prevent a massive economic slowdown sooner rather than later.

'FAANG' jumps, JPMorgan leads

Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all rose more than 4% to lead the market higher. JPMorgan Chase was among the best-performing Dow stocks, gaining 7.77%.

What happens next?

Weekly mortgage applications data is set for release at 7 a.m. The latest reading on the U.S. consumer price index is scheduled for 8:30 a.m.

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