After its worst plunge in more than three decades, stocks shot upward Tuesday. More federal aid to cope with the coronavirus outbreak had something to do with it.
There was a 4.5 rise for the S&P 500 Tuesday following Monday’s 12 percent plunge.
The proposed $850 billion federal stimulus plan to help the economy, including relief for small businesses and the airline industry, and a tax cut for wage earners has made the outlook brighter.
A boost was given when the Federal Reserve revived a program first used in the 2008 financial crisis to help companies get access to cash for short-term needs.
It was the latest move by the Fed and other central banks around the world to support the economy and smooth market operations.
There always are questions in a financial crisis whether enough is being done.
A turnaround will come. However, until things settle down, expect some ups and downs in the market.