The Dow increased by 9.36%, or 1,985 points, while the S&P 500 rose by 9.28%, or 230.31 points. The Nasdaq Composite gained 672.43 points, a 9.34% increase.
“Volatility, I always remind people, means big moves in both directions,” Randy Frederick, vice president of trading and derivatives at financial investment management firm Charles Schwab is quoted as saying by CNBC. “After as big of a rout as we’ve seen in the last 30 years, it’s not at all surprising to see at least a little bit of a bounce.”
The jump comes one day after the Dow, S&P 500 and Nasdaq Composite closed down 10% each, in response to Trump's European travel restrictions amid the coronavirus outbreak.
Trump on Friday declared the pandemic a national emergency, which will make $50 billion in funds available to US states and territories to fight the deadly disease outbreak.
Trump called on every US state to establish emergency operation centers and urged hospitals to activate their emergency preparedness plans. In addition, the declaration will give health officials maximum flexibility to help curb the pandemic.
"Our overriding goal is to stop the spread of the virus and to help all Americans who have been impacted by this," Trump said. "Again, we don't want everyone taking this test. It's totally unnecessary. And this will pass through, and we're going to be even stronger for it."
Trump also announced the travel restrictions would suspend entry of foreign nationals who’ve been in Europe in the last 14 days. In addition, US citizens returning from Europe could be subject to additional screening and quarantines. While the UK was initially excluded from the travel ban, Trump noted that it may be added to the list if COVID-19 cases in the UK continue to rise.