The day started in the pre-markets with the E-minis limit up before backing off before the open. After the open, the market got nervous as more coronavirus news came out and the SPX dipped into the negative with a net change at the lows of 2734, down $12.56.
At this time, it was announced that President Trump was going to speak at 5:30pm eastern about a stimulus plan to fight the economic drains on companies from the coronavirus. This news created enough optimism for the SPX to jump to 2800 (66 points higher). The market sat under 2800 for all but the last 90 minutes as it waited for further clues if it should move to 2700 or 2900.
At about 1pm Chicago time, rumors started to leak that President Trump was going to announce that he was helping the cruise industry and airlines. Airlines such as AAL that were as low as $14.61 jumped to $17. Boeing was -$6 on the day and jumped to unchanged.
Later, more rumors came out that Trump was going to also suspend the payroll tax on corporations and individuals for the rest of the year. This was a little confusing as earlier in the day, Nancy Pelosi stated that she and fellow congressman may not be able to meet with Trump this week. Yet this was fuel thrown into the afterburners nonetheless.
In the last 90 minutes, the SPX jumped from 2800 to close at 2882, which is about 700 additional Dow points. Bonds and the TLT fell like a rock with the TLT closing down almost 9 points. On the close, traders rushed for long deltas as many analysts predicted that we had seen the lows for the year.
SPX closed up 4.94%
Dow closed up 4.89%
AAPL closed higher by 19.17 at 285.34 (7.2%)
TLT closed at 162.51 (down 8.78)
VIX closed at 47.30 (down 7.16)