Updated: Apr 18, 2020
U.S. stocks dipped further as early rally fizzled late Tuesday with the S&P 500 falling 0.2% at the close of trading although it was up nearly 19% from its March 23 low in the day and more than 21% below its Feb. 19 high.
The decline comes in the wake of falling benchmark U.S. crude oil which fell 9.4 percent on Tuesday, having climbed earlier in the day. Oil prices have more than halved following stay-at-home orders issued by most state governments in a bid to contain the coronavirus pandemic which continues to ravage the U.S.
Stocks have been on a strong run in the past two weeks, partly due to the government's $2 trillion economic stimulus package aimed at cushioning the effects of the pandemic. The rally had taken a more positive outlook on Monday, probably because of the progress being made in the U.S. and Europe in the fight against the disease.
According to The New York Times, "Major European markets rose about 2 percent Tuesday after Asian markets picked up steam later in their trading day."
On Monday, the Dow Jones Industrial Average had risen 689 points, or 3%, to 23,369, and the Nasdaq was up 2.2% as investors worry about the recent upsurge and expect more volatility ahead.
4NEWS says Tuesday's rally would have been "one of the few times the market has mustered a back-to-back gain since the coronavirus outbreak caused it to start selling off in mid-February".
The stock market looks forward to the recovery of many economies from the crippling measures adopted by various governments around the world to control the spread of the virus even as they approve or discuss financial aid for the global economy.