The Dow Jones Industrial Average traded 371 points higher, or 1.4%, after dropping more than 300 points. The S&P 500 jumped 1.5% while the Nasdaq Composite advanced 1.3%.
The G-7 said in a statement they will use policy tools to curb an economic slowdown. However, the statement contained no specific actions.
Investors have been fretting over a potential economic slowdown as the coronavirus spreads around the world. More than 89,000 coronavirus cases have been confirmed globally along with more than 3,000 deaths related to the virus.
The virus’ fast spread led investors to price in easier monetary policy from the Federal Reserve. Traders are currently pricing in a 50 basis-point rate cut from the Fed, according to the CME Group’s FedWatch tool. Another 25 basis-point cut is also priced in for April.
The Reserve Bank of Australia moved overnight to cut in its cash rate by 25 basis points to 0.5%, a record low.