Stocks surge 7% on building hopes for US virus stimulus

The S&P 500 briefly dipped into bear market territory: Here's what that means
FILE - This Jan. 31, 2020, file photo shows a Wall Street sign in front of the New York Stock Exchange. (AP Photo/Mark Lennihan, File)

NEW YORK (AP) — Stocks are jumping in morning trading on Wall Street Tuesday amid expectations that Congress is nearing a deal on a big coronavirus relief bill.

That would follow more aggressive steps from the Federal Reserve announced a day earlier to support lending and bond markets. Major U.S. indexes jumped 7% in early trading, joining a worldwide rally.

The market has seen rebounds like this before, only for them to wash out immediately. Investors say they ultimately need to see the number of new coronavirus infections peak before markets can find a bottom.