Dec. 15 (UPI) — The Dow Jones Industrial Average climbed more than 330 points on Tuesday as U.S. markets rebounded amid renewed hope for another round of COVID-19 stimulus.
The blue-chip index rose 337.76 points, or 1.13%, while the S&P 500 gained 1.29% and the Nasdaq Composite closed up 1.25% in the first day of trading after a bipartisan group of lawmakers introduced their latest stimulus proposal.
The version of the bill released Monday included a $748 billion package focused on funding for education, vaccines and transportation, alongside a $160 billion add-on including the most contentious provisions such as state and local funding and a short-term liability shield for employers.
House Speaker Nancy Pelosi invited Senate Republican leader Mitch McConnell to discuss a relief deal on Tuesday and McConnell said he would keep lawmakers in Washington, D.C., until a deal is reached.
Tuesday’s gains came after the Dow and S&P gave up early gains fueled by the distribution of a COVID-19 vaccine and ended the day with losses after the U.S. surpassed the grim milestone of 300,000 deaths since the start of the pandemic.
“There’s been a tug of war between the vaccine news and the virus news. The only tiebreaker that’s kept the averages on their way higher seems to be the potential for getting stimulus out of gridlock,” Art Hogan, chief market strategist at National Securities, said. “It certainly feels like one of the proposals that’s on the table … can go through.”
Lindsey Bell, chief investment strategist for Ally Invest, told Bloomberg that the market views stimulus as a “necessary bridge” to expansive vaccine distribution.
“Market participants would like to see a deal sooner rather than later given the expectation for economic data to slow near term,” Bell said. “In the absence of a deal, turbulence could pick up.”