Dow rises 500 points on hopes for airline bailout

U.S. stock markets soared Wednesday amid hopes that Republicans and Democrats might reach an agreement on aid for the airline industry, even as a broader coronavirus relief package appeared to be off the table.

The Dow Jones Industrial Average rose 531 points, or 1.9 percent, its best showing since July, while the S&P 500 jumped 58 points, or 1.7 percent and the Nasdaq composite rose 210 points, or 1.9 percent.

The uptick followed a harsh day for traders Tuesday, when President Trump announced he was pulling the plug on negotiations over a fifth COVID-19 stimulus bill that could have restored some additional unemployment benefits, provided loans to small businesses and helped state and local governments fill in massive budgetary gaps.

But hours later on Tuesday, Trump tweeted support for a separate airline package, as well as a new round of direct payments to Americans.

Speaker Nancy Pelosi (D-Calif.), who has brushed off suggestions of piecemeal relief bills, threw her support behind a standalone airline package last week, and urged the GOP to reconsider the bill.