Here’s what happened to the stock market on Tuesday

Traders work on the floor of the New York Stock Exchange on January 29, 2020.

Spencer Platt | Getty Images

Dow Jones Industrial Average jumps 1,049 points

The Dow jumped 1,049.27 points, or 5.20%, to 21,237.79. The S&P 500 climbed 6% to 2,529.19. The Nasdaq Composite advanced 6.23% to 7,334.78. Stocks rallied on Tuesday amid rising expectations of fiscal stimulus.

Stimulus hopes lift stocks

The Trump administration is weighing a fiscal stimulus package of more than $1 trillion that includes direct payments to Americans, according to a source familiar with the matter. Treasury Secretary Steven Mnuchin told reporters the government is considering directly sending checks to Americans in the next two weeks. Bottom line, news of potential fiscal stimulus helped the market recover some of the steep losses suffered in the previous session.

Amazon jumps, Boeing tumbles

Amazon shares jumped more than 7% to lead big-tech stock higher after an analyst at Bank of America noted he sees “both a short-term and longer-term benefit from in-home shift and reiterate our Buy rating.” Boeing dropped 4.22% to cap gains on the Dow.

What happens next?

Investors will look for updates on the administration’s stimulus measures as well as the number of coronavirus cases.

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