Wall Street snapped a three-day losing streak Tuesday and clawed back from the dizzying plunge the day before when stocks put in their worst daily performance since the financial crisis.
Tuesday's rally was buoyed by hopes the Trump White House is putting together a plan to give the economy a shot in the arm as the coronavirus outbreak threatens to pull the economy into a recession.
The Dow surged 1,167 points to recover more than half of of Monday's record point loss. The S&P 500 rallied 135 points and The Nasdaq rose almost 400 points.
But Randy Watts, chief investment strategist at William O'Neill and Company, cautions against getting back into this market too soon.
SOUNDBITE: RANDY WATTS, CHIEF INVESTMENT STRATEGIST, WILLIAM O'NEILL AND COMPANY, SAYING:
"I think the correction has been very quick. I think that oftentimes these things take a little bit longer to resolve in terms of time. Again, I wouldn't be in a rush to commit new capital to the market until I see the market maintain a low for several days and also we get that follow-through day when the market wants to start going up. Today's action where we started off at the highs of the day and then fade, that's very negative and that tells you there's more weakness coming."
Investors, however, were happy to go shopping at least for today. A pledge from President Trump to help the travel industry, one of the hardest hit by the coronavirus, lifted airline and cruise stocks. American Airlines, the most battered of the airline stocks, saw the biggest bounce - jumping 14-1/2 percent on the day. On the cruise ship side, Carnival was the big winner - rallying 10 percent.
Banks got a boost as bond yields rallied from all-time lows. J.P.Morgan Chase was the best performing Dow stock - finishing up by nearly 8 percent.
And it wasn't just stocks and bond yields on the rise. Oil rebounded from its worst day since the 1991 Gulf War. Crude oil jumped more than $3 to settle above $34 a barrel. Oil stocks followed suit.