Stocks Rally, Dow Up More Than 400 Points As Oil Prices Rebound

The Dow Jones Industrial Average was up almost 2%, around 450 points, on Wednesday, while the S&P 500 rose 2.3% and the Nasdaq Composite gained 2.8%. 

Oil prices staged a rebound on Wednesday, reversing some of the unprecedented losses from earlier this week: WTI crude oil futures for June stabilized, rising 20% to around $14 per barrel.

The June futures contract had fallen more than 40% on Tuesday amid plummeting global demand, a day after WTI futures for May plunged below zero for the first time in history—meaning that sellers were essentially paying buyers to take oil off their hands.

President Trump’s chief economic advisor, Larry Kudlow, told CNBC on Wednesday that the price of oil should recover over the next several months as the economy starts to reopen and coronavirus lockdown measures are lifted.

Stocks also moved higher thanks to Congressional leaders—after days of tense negotiations—finally reaching a bipartisan deal to replenish funds for emergency small business lending programs, national coronavirus testing and hospitals.

The $484 billion bill passed the Senate on Tuesday evening, with the House expected to approve the legislation as early as Thursday.