• US stocks saw a sharp rebound on Tuesday, a day after suffering their worst decline since the depths of the financial crisis.
  • The rally is being driven by optimism over a government stimulus package designed to boost US economic activity.
  • Investor sentiment also got a boost from a deescalation of the mounting oil-price war between Saudi Arabia and Russia.
  • Watch major indexes trade live here.

US stocks saw a sharp rebound on Tuesday, a day after suffering their worst decline since the depths of the financial crisis.

The Dow Jones industrial average surged as much as 946 points – or 4% – in early trading after sliding 7.8% on Monday, its biggest decline since October 2008. The S&P 500 rose 3.5% at 10:15 a.m. ET.

The rally is being driven by optimism over a government stimulus package designed to boost US economic acctivity. One measure being discussed is a payroll tax cut, which President Donald Trump has said he’s discussing with members of Congress.

Here’s where major US indexes stood as of Tuesday at 10:15 a.m. ET:

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Global markets also got a reprieve from the oil-price war that's broken out between former allies Russia and Saudi Arabia. While both nations have pledged to boost output, Russia said on Tuesday that it's open to rekindling cooperative efforts with OPEC+.

Fresh off its biggest single-day plunge since the Gulf War in 1991 - which reached 31% at its intraday low - crude oil rebounded as much as 11% on Tuesday.