New Delhi, Mar 24 (IANS): Stock markets in the US surged on Tuesday on hopes that the US Congress would pass a stimulus package to support the economy in the wake of the coronavirus outbreak.

Both Dow Jones Industrial Average and S&P500 hit their 7 per cent upper circuit during initial trade on Tuesday.

Currently, Dow is trading at 20,034.50, higher by 1,442.57 points or 7.76 per cent from its previous close. S&P500, on the other hand, was trading at 2,394.82, higher by 157.42 points or 7.04 per cent.

US Federal Reserve's assurance of liquidity support to the world's largest economy has also supported the stocks.

Further, British-American-Israeli biophysicist Michael Levitt's statement that the world will beat coronavirus faster than most experts expect if social distancing is observed has also uplifted the sentiments, analysts said.

These factors have also helped oil prices surge on Tuesday. Currently, brent crude is priced at $27.78 per barrel, higher by 2.77 per cent.

WTI crude is at around $23.40 per barrel, higher by 0.17 per cent from its previous close. Natural gas price has also risen 2.87 per cent to $1.65 per MMBtu.

The surge in commodity and stock markets comes as a sharp reversal from the recent bearish trade due to the coronavirus pandemic and concerns of a severe impact on the global economy.