The Dow Jones Industrial Average climbed more than 5% on Monday, while Nasdaq and S&P 500 both recovered 4% after the previous week’s deep sell-off over the virus spread.
After the indexes gained a few minutes before the market closed, the Dow closed at its biggest one-day gain since 2009, while the S&P 500 and Nasdaq gained its highest one-day rise since December 2018.
This rally came after the US stock market experienced its worst week since the financial crisis in 2008, bringing the market into correction territory amid fears of recession.
The S&P 500 remains down 8.7% while Apple climbed 9.3%, its biggest one-session gain since 2008.
Bank of Japan Governor Haruhiko Kuroda said that the central bank would implement necessary measures to keep financial markets stable. This was echoed by Fed Chair Jerome Powell.
The Dow Jones Industrial Average gained 5.09%, closing at 26,703.32. The S&P 500 rose 4.60%, to 3,090.23. The Nasdaq Composite increased 4.49%, to 8,952.17.
Trading was busy on US exchanges, with 14 billion shares transactions in comparison to 9.5 billion-share on average for the last 20 days.
The S&P 500 information technology index gained 5.7%.
The Institute for Supply Management said that domestic manufacturing activity barely budged in the previous month caused by supply issues over the epidemic.
The S&P 500 reported no new 52-week highs and 18 new lows, while the Nasdaq Composite posted 27 new highs and 149 new lows.