The S&P 500 rose 6% on Tuesday, a day after its steepest decline since the 1987 crash, as the Federal Reserve took further steps to boost liquidity and stem damage from the coronavirus outbreak that has gripped the global economy.
The central bank relaunched a financial crisis-era purchase of short-term corporate debt in the hope that companies are able to continue paying workers and buying supplies through the pandemic.
Tuesday's move to buy back commercial paper followed several emergency measures taken by the U.S. central bank on Sunday, including slashing interest rates to near zero.
But with the day's bounce, the market has retraced only part of its recent losses. The S&P 500, which fell 12% on Monday, is still down roughly 25% from its Feb. 19 record closing high, and many market-watchers see more volatility ahead.