Dow posts 557 point gain as Fed Bullard says unemployment could drop quickly “if we play our cards right”


US stocks finished sharply higher on Tuesday, and Dow Jones industrialists made their third straight gain, fueled by a rally in energy and materials stocks, one day after tech stocks registered a dramatic reversal. Comments made by members of the Federal Reserve implying additional support for the economy and pointing to the possibility of a drop in the unemployment rate also helped to lift the market, one day after the Nasdaq organized a powerful reversal. The Dow Jones Industrial Average DJIA,
+ 2.13%
closed at around 557 points, or 2.1%, at 26,643, the S&P 500 SPX index,
+ 1.34%
closed the session up 1.3% to 3,198, while the Nasdaq Composite Index COMP,
+ 0.94%
concluded the day up 0.9% to around 10,489. Shares added to gains in Tuesday afternoon action after Fed Governor Lael Brainard said the US central bank should use large-scale asset purchases during a “sustained” period to help the economy rebound in a “thick fog of uncertainty” caused by COVID-19. Later Tuesday, chairman of the Saint-Louis Fed James Bullard gave an optimistic tone to the outlook, saying that the unemployment rate could fall sharply in the next six months if “we play our cards right” and that many workers subject to temporary layoffs are recalled . On Monday, the Nasdaq led the market action, trading at an intraday record at the start of the day before dropping sharply in afternoon activity to end the day down 226.60 points, or 2.1%, at 10,390.84.


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