Dow surges 1,000 points as Senate nears stimulus deal

Stock markets surged on Tuesday morning as the Senate closed in on a nearly $2 trillion stimulus package to prop up the economy during the coronavirus epidemic.

The Dow Jones Industrial Average was up more than 1,300 points, or 7.3 percent, while the S&P 500 increased 150, or 6.7 percent, in the opening minutes of trading.

Late Monday night, Senate Minority Leader Charles SchumerChuck SchumerPelosi slams Trump executive order on pre-existing conditions: It 'isn't worth the paper it's signed on' 3 reasons why Biden is misreading the politics of court packing Cruz blocks amended resolution honoring Ginsburg over language about her dying wish MORE (D-N.Y.) and Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money: Anxious Democrats push for vote on COVID-19 aid | Pelosi, Mnuchin ready to restart talks | Weekly jobless claims increase | Senate treads close to shutdown deadline Vulnerable Democrats tell Pelosi COVID-19 compromise 'essential' Pelosi asks panels to draft new COVID-19 relief measure MORE emerged from a day of marathon negotiations sounding upbeat.

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"The president would like to have a deal and he's hopeful we can conclude this tomorrow," Mnuchin told reporters. During the meeting, Mnuchin phoned President TrumpDonald John TrumpSteele Dossier sub-source was subject of FBI counterintelligence probe Pelosi slams Trump executive order on pre-existing conditions: It 'isn't worth the paper it's signed on' Trump 'no longer angry' at Romney because of Supreme Court stance MORE and said they were "very, very close to an agreement," Schumer told reporters.

In just a month, markets have tanked, shedding a third of their value as the economic costs of the coronavirus pandemic have come into view.

Financial institutions are forecasting that the extreme social distancing measures and business closures have tipped the economy into recession, and they are expecting a deep spike in unemployment and a sharp contraction in economic activity.

Still, they remain hopeful that the pain will be temporary and that life and the economy will largely return to normal in the second half of the year.

Updated at 9:42 a.m.