Dow sees biggest 1-day gain since 1933

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Since the market began selling off on February 20, the S&P 500 has had six days where it's risen, and all but one of them were big gains of more than 4 per cent.

Senator Chuck Schumer and Treasury Secretary Steven Mnuchin said they hope to have a deal by Tuesday morning.

The price action suggests investors are still paying close attention to the headlines about US lawmakers closing in on a massive fiscal stimulus bill work $2 trillion to combat the economic damage from the pandemic.

Tuesday saw the ASX 200 rising almost 190 points or 4.2% to end at 4735.7 points as all sectors finished higher, led by energy with a 7.6% gain closely followed by real estate up 7.1%. That's a rebound from Monday's losses of about 3% for both the Dow and S&P 500.

CSL lagged the rest of the market, closing 1.1% higher after being the star performer in Monday's slump with a 4% gain. "But most acknowledged the day's surge was likely just another bear-market rally, a momentary melt up after a meltdown that we will likely see again in an era of extreme volatility taking cues from the Great Depression". Senate Majority Leader Mitch McConnell later said the bill is at the "five-yard line".

"We're using some of the funds we have, but we need Congress to approve additional funds today so that we can move forward and support American workers and the American economy", Mnuchin said.

House Speaker Nancy Pelosi told CNBC's Jim Cramer, "I think there is real optimism that we could get something done in the next few hours", during an interview on Squawk on the Street on Tuesday.

Any action by the United States government would follow aggressive efforts by the Federal Reserve, including its pledge to buy as much government debt as needed to soothe markets, while also lending directly to businesses.

The spread of the coronavirus also forced the New York Stock Exchange to conduct its first day of fully electronic trading. One of the measures taken by the Fed was an open-ended asset purchase program, which the central bank will run in the "amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy".

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