Stockssoaronstimulusplans,biden

Ex-vice president seen as better for business

The Dow Jones Industrial Average soared more than 1,100 points, or 4.5 percent, Wednesday as governments and central banks around the globe took more aggressive measures to fight the virus outbreak and its effects on the economy.

The gains more than recouped the market’s big losses from a day earlier as Wall Street’s wild, virus-fueled swings extend into a third week.

Stocks rose sharply from the get-go, led by big gains for health care stocks after Joe Biden solidified his contender status for the Democratic presidential nomination. Investors see him as a more business-friendly alternative to

Bernie Sanders.

The rally’s momentum accelerated around midday after House and Senate leadership reached a deal on a bipartisan $8.3 billion bill to battle the coronavirus

outbreak. The measure’s funds would go toward research into a vaccine, improved tests and drugs to treat infected people.

Investors are also anticipating other central banks will follow up on the Federal Reserve’s surprise move Tuesday to slash interest rates by half a percentage point in hopes of protecting the economy from the economic fallout of a fast-spreading virus. Canada’s central bank cut rates on Wednesday, also by half a percentage point and citing the virus’ effect.

“The fact that you get an $8 billion bill, that’s money that will be spent, hopefully, on something that really will have an impact on mitigating the effects on the economy,” said Tom Martin, senior portfolio manager with Globalt Investments.

Somemeasuresoffearinthe marketeased.treasuryyieldsrose but were still near record lows in a sign that the bond market remains concerned about the economic pain possible from the fast-spreading virus. Companies around the world are already saying the virus is sapping away earnings due to supply chain disruptions and weaker sales, with General Electric becoming the latest to warn its investors.

Even though many investors say they know lower interest rates will not halt the spread of the virus, they want to see central banks and other authorities do what they can to lessen the damage. The S&P 500 sank

2.8 percent on Tuesday after a brief relief rally triggered by the Fed’s rate cut fizzled.

“Monetary policy can only take us so far, but at least it’s a step,” said Jack Ablin, chief investment officer at Cresset. “Investors will take comfort in coordinated central bank action. I take comfort in knowing this isn’t the plague. We’ll eventually get through this.”

The Bank of England has a meeting on March 26 on interest rates. The European Central Bank and others around the world have already cutratesbelowzero,meanwhile, which limits their monetary policy firepower. But economists say they could make other moves, such as freeing up banks to lend more.

An indicator of fear in the market, which measures how much traders are paying to protect themselves from future swings for the S&P 500, sank 14.1 percent.