The Federal Reserve and central banks are also offering tremendous support by cutting interest rates and supporting lending markets, but investors say they need to see the number of new infections peak before they can feel comfortable knowing how deep the looming economic downturn will be.
The Dow Jones Industrial Average rose 661.9 points, or 3.2%, to 21,366.81. The Nasdaq dipped 0.45%, however.
But Boeing rallied for its second day, climbing 24.3 per cent as reports emerged that Congress would include US$17 billion loans for the troubled planemaker.
Nike climbed almost 9.2% after it said stronger online sales in China during the coronavirus outbreak helped it offset plunges in revenue caused by the shutdown of stores across the country.
The S&P and Dow notched their first back-to-back gains since February but pared much of their moves late in the session after Sen.
It was a strong day for all major averages, as the Dow closed at 2,112.98 points higher while the S&P 500 surged more than 9 percent, reaching roughly 2,447, marking its best day since October 2008.
The US Senate is expected to approve a $2-trillion stimulus package later Wednesday to blunt the economic impact of COVID-19, after days of strenuous negotiations between Republicans and Democrats. Majority Leader Mitch McConnell, jointly announced a bi-partisan agreement was reached, in hopes of sparing the United States from an economic depression amid the spread of coronavirus. "In effect, this is a war-time level of investment into our nation". "I think the Fed has been extremely proactive, and Jay Powell and his team have been working really hard and gotten ahead of this and shown they can set up a whole bunch of diverse programs that will help us keep the economy functioning during this shutdown period".
"People have to contend with the idea that the longer that lasts, the more people potentially are losing their job", said Yousef Abbasi, director of USA institutional equities at INTL FCStone. It had been up more than 1,300 points before the rally faded.
Spain experienced a record spike in coronavirus deaths, with 504 reported for Tuesday.
Over 450,000 people have been infected globally and more than 20,000 have died, according to a Reuters tally.
Boeing, long a symbol of USA manufacturing strength, remains down by more than 50% since mid-February.
"The secretary stressed that as a leader of the G20 and an important energy leader, Saudi Arabia has a real opportunity to rise to the occasion and reassure global energy and financial markets when the world faces serious economic uncertainty", she said.
CNBC's Jesse Pound contributed reporting. They believe a bounce could occur here even as coronavirus cases continue to surge because the market was so oversold.