US Stocks Struggle Early after Tuesday's Overcooked Rally

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The Dow Jones Industrial Average had its best one-day percentage gain in almost 90 years, soaring 2,093 points by the time markets closed on Tuesday as investors braced for Congress to finally pass the coronavirus stimulus bill.

The 9.3% rise in the benchmark S&P 500 was part of a global rally which saw the Europe-wide Stoxx 600 finish up 7.5%, London's FTSE 100 end up 9%, Frankfurt's DAX with an 11% gain, the ASX 200 with a 4.2% rise and looking to go as much again today and perhaps more if the US Congress nuts out a final bill approves it.

Early Monday, however, there was a spike in premarket trading after the Fed announced a series of additional measures to juice the economy.

Overall, the Dow has lost about 8,000 points in the last six weeks. Both European and Asian markets also reported huge gains Tuesday as a result of the US Federal Reserve's actions to assist the economy and news of Italy experiencing a slowdown of its COVID-19 infection rate.

The deal includes $1,200 checks to be sent to many Americans.

Of the twenty past instances when the S&P rallied 8% or more on a single day, thirteen of them took place when stocks were in the embrace of a bear market.

The Dow Jones Industrial Average has been on a wild ride in recent weeks, with record drops and record gains becoming the norm.


The moves came after the White House and Senate leaders agreed on a massive $2 trillion coronavirus stimulus bill.

Some investors in Asia are buying stocks for the first time in weeks, according to Catherine Yeung, investment director at Fidelity International in Hong Kong.

The increase represented the index's largest one-day surge since 1933, and was matched by similarly spectacular recoveries in the S&P 500 and Nasdaq. This was a machine driven rally, just like the sell-offs...

Furthermore, the volatility or fear index remains near its all-time high reached last week at 82.69, which means investors are still nervous about the future. As of Wednesday morning, it was still hovering around a still-high 60 level.

All three main USA stock indexes jumped more than 5%, bouncing back from a brutal selloff in the previous session on fears of a deep global recession as entire nations shut down to prevent the virus from spreading.

-CNBC's Jesse Pound contributed reporting.

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