Dow Jones sees record jump on Tuesday amid roller coaster month

New York Stock Exchange building

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Stocks grew jittery Wednesday as investors' initial optimism about an estimated $2 trillion USA stimulus package waned amid renewed concerns about the economic damage from the coronavirus pandemic.

Dow futures initially surged but were last down 142 points, or 0.7%, suggesting the index would sink following a rally on Tuesday that saw it notch up its biggest point gain on record and its biggest percentage increase since 1933.

The benchmark Dow Jones Industrial Average soared over 2,100 points or more than 11 percent from Monday. The S&P 500's 9.4 per cent surge Tuesday was a better performance than the index has turned in for 10 of the last 20 full years.

On US stock markets, Norwegian Cruise Line Holdings and American Airlines were among the companies posting the biggest gains, rising 42% and 36% respectively.

Former Federal Reserve Chairman Ben Bernanke also said Wednesday the USA economy will experience a quick rebound after a "very sharp" recession.

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The severity of the spread of COVID-19 and the expectations of aggressive stimulus measures have whipsawed financial markets with the Dow Jones .DJI gaining nearly 2,000 in one session last week, only to fall almost 3,000 points the next day.

A vote had been expected in the Senate by the end of the day, but then some lawmakers balked at the proposed bill.

"We still need to see a slowing of the virus cases and a peaking in the U.S.", Carol Pepper, chief executive officer at Pepper International, told Bloomberg TV. The yield on the 10-year Treasury rose to 0.85% from 0.81% late Tuesday.

Markets in Europe were choppy: The pan-continental Stoxx Europe 600 finished the day up 3.1% after swinging between losses and gains earlier.

"At last we have a deal", Republican Senate Majority Leader Mitch McConnell said. It still needs to be finalized in detailed legislative language, but would give direct payments to most Americans, expand unemployment benefits and provide a $367 billion program for small businesses to keep making payroll while workers are forced to stay home.

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County public health director Barbara Ferrer says it's a 'devastating reminder that Covid-19 affects people of all ages'. As of Tuesday, there had been 662 cases across the entire county , including 11 deaths, with 119 patients hospitalized.

"We're in a global economic freeze, and we don't know how long it'll take to thaw", said Stephen Dover, head of equities at Franklin Templeton.

Senate Minority Leader Chuck Schumer, D-N.Y., called the deal "an outstanding agreement".

The number of known infections has leaped past 450,000 people worldwide, and more than 20,000 have died, according to Johns Hopkins University. Markets across Asia were all up more than 2%.

Nike Inc (NKE.N) rose 9% after the sportswear large beat quarterly income estimates and stated gross sales in China had been rebounding, helped by on-line orders. Within the first 30 minutes of trading, it was up as much as 2.2% and down as much as 0.7%.

The British pound slipped 0.2 per cent to US$1.1739.

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Schumer had agreed on additional oversight of the funds, according to several people involved in the talks. While the two sides have resolved many issues, some final sticking points remain.

In other trading, USA crude oil gained 38 cents to $24.39 per barrel in electronic trading on the New York Mercantile Exchange. Gold futures dropped 1.01%.

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