The Dow swung another 1,000 points on Tuesday, but the New York indices ultimately closed up nearly 5% instead of sharply down like Monday. Hopes were raised in the afternoon when Trump reiterated promises of injecting stimulus to the American economy, but details were few and the late-afternoon rally felt tentative.
The market consensus is that volatility won’t ebb until the number of coronavirus cases declines, as they are in China and South Korea. The U.S. and Italy are finally taking measures to curb the spread of the outbreak. The uncertainty fed a choppy session with markets opening up 3.5%, but then fading by lunchtime and even dipping into the red.
The rally was led by oil snapping back after a brutal Monday when it plunged over 30%. On Tuesday, WTI regained over 14% by the close at $34.50 while WCS soared nearly 21% to $21.50. Big oil names like Canadian Natural Resources rose nearly 3% and MEG Energy soared 16.5% Financials, both banks and telcos, saw some relief after being hammered, like Manulife which climbed 5.45%. In the States, tech names, such as Apple rebounded 7.2% while travel and leisure companies rallied after Trump promised some support. Royal Caribbean rose 7%. So far, there’s no news in the oil war between, though Russia has not ruled out talks with Saudi Arabia.