Gold prices just lower; monthly gains on track
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* Fed to buy debt directly from companies
* Defensive utilities, consumer staples help lead S&P 500
* Indexes up: Dow 5.2%, S&P 500 6%, Nasdaq 6.2%
(Updates to close)
By Caroline Valetkevitch
NEW YORK, March 17 (Reuters) - 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.
The Dow Jones Industrial Average .DJI rose 1,048.86
points, or 5.2%, to 21,237.38, the S&P 500 .SPX gained 143.06
points, or 6.00%, to 2,529.19 and the Nasdaq Composite .IXIC
added 430.19 points, or 6.23%, to 7,334.78.
Investors "like that the Fed is willing to step in here and
willing to step in big ... That's an important message that
they're sending to market participants," said Tracie McMillion,
head of global asset allocation strategy at Wells Fargo
Investment Institute in Winston-Salem, North Carolina.