VOLATILE MARKETS

White House expected to propose $850 billion economic stimulus.

After suffering their worst day in decades, stocks bounced back as Washington policymakers talked up plans to try to cushion an economy careening toward a recession. The Dow gained more than 1,000 points.

NEW YORK — Stocks closed solidly higher Tuesday after President Donald Trump promised he’s “going big” with plans to blunt the economic pain caused by the coronavirus outbreak.

The market got back not quite half of what it lost in a breathtaking drop a day earlier, which was the biggest in more than three decades. The S&P 500 rose 6% and the Dow rose 5.2%, or 1,049 points.

Treasury Secretary Steven Mnuchin said the government intends to send to checks to Americans in the next two weeks, to help support them while chunks of the economy come closer to shutting down.

Gains for stocks accelerated as Trump and Mnuchin spoke at a briefing. The administration is expected to propose a roughly $850 billion stimulus plan to help the economy. The travel industry has been among the industries hardest hit by the outbreak as planes sit grounded and hotels and casinos shut their doors.

Investors have been waiting for Washington to offer more aid for the economy. After flipping between gains and losses Tuesday morning, stocks turned decisively higher after the Federal Reserve revived a program first used in the 2008 financial crisis to help companies get access to cash for short-term needs.

Ultimately, investors say they need to see the number of infections slow before markets can find a bottom. Uncertainty about when the outbreak will be contained and how much damage will be done has kept the markets on a roller coaster as steep losses give way to sharp gains and are wiped out again, sometimes all in the same day.