Here's what happened to the stock market on Tuesday

Published Tue, Mar 24 20204:14 PM EDTUpdated Tue, Mar 24 20204:33 PM EDT

Speaker of the House Nancy Pelosi waits for U.S. President Donald Trump to arrive to deliver his State of the Union address to a joint session of the U.S. Congress in the House Chamber of the U.S. Capitol in Washington, U.S. February 4, 2020.

Leah Millis | Reuters

Dow Jones Industrial Average rallies 2,112 points

The Dow gained 2,112.98 points, or 11.37%, to 20,704.91 The S&P 500 climbed 9.38% to 2,447.33. The Nasdaq Composite advanced 8.12% to close at 7,487.86. Expectations of a fiscal stimulus package passing through Congress gave stocks a massive lift off their lowest levels in more than three years. The Dow also had its best day since 1933.

'Real optimism' over fiscal package

House Speaker Nancy Pelosi told CNBC's Jim Cramer there is "real optimism" in Congress over a stimulus deal being reached. "We think the bill has moved sufficiently to the side of workers," she said. Senate Minority Leader Chuck Schumer has also indicated he is hopeful a deal will be reached. Bottom line, investors cheered the apparent progress made in Washington. However, investors want to see the bill signed sooner rather than later.

Chevron leads energy higher, travel stocks jump

Chevron shares jumped nearly 23% to lead the energy sector, as well as the Dow. Some travel-related stocks were higher. Delta Air Lines rose more than 21% and Carnival jumped more than 14% each amid expectations the space could get fiscal support.

What happens next?

Investors will keep an eye on Washington for any more signs of progress on fiscal stimulus. Weekly mortgage applications numbers are set for release at 7 a.m. Wednesday. Durable goods orders numbers are also scheduled for 8:30 a.m.

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