The Dow was on track for its worst month since September 1931

  • U.S. equity markets surged Tuesday morning amid investor optimism that members of Congress will overcome their differences to reach a deal on a $1.6 trillion COVID-19 stimulus package.

    The Dow Jones Industrial Average surged 1,079 points, or 5.8 percent, in the opening minutes of trading, while the S&P 500 and Nasdaq Composite gained 5.3 percent and 5.1 percent, respectively.

    The early gains came after the major averages plunged Monday despite the Federal Reserve announcing it would buy unlimited amounts of assets to support the economy. Monday’s 3 percent drop left the Dow at a three-year low and on track for its worst month since September 1931, one of the earliest years of the Great Depression, according to Dow Jones Market Data.

    Looking at stocks, airlines soared following a report from The Wall Street Journal that carriers are drawing up plans for a potential voluntary shutdown of domestic air travel.

    Other travel-related names, including cruise operators and online booking sites rocked by fallout from the virus, also saw big gains.

    Elsewhere, banks rallied as selling of U.S. Treasurys swung the yield curve steeper. The 2-year yield climbed 2.3 basis points to 0.317 percent and the 10-year yield jumped 5.6 basis points to 0.826 percent.

    General Motors said it would draw down $16 billion in credit and suspended its 2020 outlook. Intel shares rose after the chipmaker said it was suspending its buyback program due to uncertainty caused by COVID-19.

    Oil giant Chevron followed European rival Royal Dutch Shell’s Monday announcement, saying it will cut capital spending by 20 percent and suspend its share-buyback program.

    Commodities gained, with gold rallying 5.8 percent to $1,664 an ounce and West Texas Intermediate crude oil up 4.5 percent at $23.88 a barrel. Red mre at FOX Business