Market Snapshot: Stocks stabilize with gains after worst day since 2008 crisis

What are the major indexes doing?

The Dow Jones Industrial Average US:DJIA opened 846 points, 3.6%, higher, near 24,697, while the S&P 500 US:SPX rose 61 points or 2.2%, to open near 2,808. The Nasdaq Composite Index US:COMP opened 281 points, 3.5%, near 8,232.

Thee Dow on Monday plunged 2,013.76 points, or 7.8%, to 23,851.02, while the S&P 500 fell 225.81 points, or 7.6%, to end at 2,746.56, near its session low. The Nasdaq Composite Index plunged 624.94 points, or 7.3%, to finish at 7,950.68. All three benchmarks suffered their biggest one-day percentage declines since 2008.

What’s driving the market?

Stock-index futures found support late Monday after President Donald Trump said in a White House news conference that he would seek payroll tax relief and other measures to help businesses deal with the coronavirus outbreak. Trump said he would announce more details Tuesday, and discuss “a possible payroll tax cut or relief, substantial relief, very substantial relief, that’s big, that’s a big number,” the Associated Press reported. However, administration officials said the White House wasn’t ready to roll out specific economic proposals, CNBC reported early Tuesday, citing administration officials.

Monday’s stock plunge was the result of fears that government attempts to contain the epidemic are shutting down economic activity globally, along with the biggest one day fall in crude oil prices since the 1991 Gulf War after Saudi Arabia and Russia began a price war last Friday.

See:Why an ‘oil shock’ sent the Dow down 2,000 points and upended global financial markets

Also read:Why U.S. shale oil producers are the real target in the Saudi-Russia price war

“My personal view is that there’s still some more downside to come, largely due to the fact that we don’t have good data on the extent of the virus in the US,” said Donald Calcagni, chief investment officer with Mercer Advisors, in an interview.

Equities markets may perk up on discussion of tax cuts, Calcagni said, “but I don’t think that’s a long-term solution. Eventually we’ll have to take it back. I think what the market really needs to see is better leadership out of the White House in terms of dealing with the virus.”

Meanwhile, investors are keeping close tabs on the spread of the coronavirus epidemic. Italy moved into full lockdown, with the government barring persons from leaving cities in which they reside without special permission and implementing range of other measures.

In corporate news, airlines, including American Airlines Group Inc. US:AAL , Delta Air Lines Inc. US:DAL and Southwest Airlines Co. US:LUV announced capacity reductions and other measures in response to the coronavirus outbreak.

Shares of American Airlines jumped 6.1%, while Delta shares were up 3.6% and Southwest jumped 3.8%.

Related: Here’s how the plunging stock market could cause a recession

What are other markets doing?

After plummeting 25% Monday, their worst day since the 1991 Gulf War, crude oil prices were on the rise. West Texas Intermediate crude for April delivery US:CLJ20 on the New York Mercantile Exchange rose 8.4% to $33.75 a barrel, while May Brent crude UK:BRNK20, the global benchmark, gained 8.6%, to $37.30 a barrel.

Treasury prices also retreated lifting yields, as haven flows abated. Yields, which move in the opposite direction of price, dropped sharply on Monday, sending the 10-year note BX:TMUBMUSD10Y and 30-year bond BX:TMUBMUSD30Y rates to all-time lows. The 10-year yield popped 15.1 basis points to 0.652%, while the 30-year yield was 21 basis points higher to 1.134%.

Gold futures US:GCJ20 slipped 0.6% to 1,665.50 an ounce.

In Asia overnight, the Nikkei JP:NIK rose 0.85%, the China CSI 300 XX:000300 popped 2.1%, and the Hang Seng HK:HSI was up 1.4%.

In Europe, the STOXX 600 XX:SXXP rose 2.5%. Italy’s FTSE MIK Index IT:I945 was up 0.8%.

Which stocks are in focus?

Tesla Inc. US:TSLA shares bounced nearly 9% after notching a series of lows.

Shares of Thor Industries Inc. US:THO jumped 4.7% even after a hefty stock price target cut, to $75 from $95, by KeyBanc Capital analysts.

A handful of cruise operators saw shares rise despite analyst price target cuts, including Royal Caribbean Cruises Ltd. US:RCL and Carnival Corporation US:CCL .

See:Here’s how investors say policymakers could help businesses survive a coronavirus cash crunch

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