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Mar 10, 2020

US Markets | Markets Live updates: Stocks poised to roar back after bruising sell-off

Taylor Telford

U.S. markets are poised for a comeback after their worst day of trading since the 2008 financial crisis, with Dow Jones industrial average futures pointing to a more than 1,000-point comeback as investors cheered potential stimulus measures from the White House.
At an impromptu news conference Monday, President Trump announced plans to cut payroll taxes, relieve hourly workers, and offer targeted help for the airline, cruise, and hotel industries. He said more details about the economic response would be released Tuesday.
The move came a day after U.S. markets crated more than 7 percent on the dual threat of the coronavirus’s spread in the United States and the oil price war that erupted between Russia and Saudi Arabia over production targets.
“Markets are trying to force a policy response — from central banks and from Washington D.C. A basket of more aggressive monetary policy action is coming and how markets respond is the big question,” said David Bahnsen, chief investment officer of the Bahnsen Group, wrote in commentary Monday. “The market will get something resembling “zero bound” very soon, but that is not likely to be effective.”
Overseas markets also saw a bounce, with Japan’s Nikkei 225 closing up 0.85 percent and Hong Kong’s Hang Seng climbing 1.4 percent. European markets were surging more than 3 percent at midday, with the benchmark Stoxx 600 index getting a 3.6 percent lift.
Oil prices, which sank 25 percent to their lowest trading levels since the 1991 Gulf War Monday, bounced back too. Brent crude, the international oil benchmark, was up more than 8.5 percent to trade at a little more than $37 a barrel. Energy stocks which were pummeled amid Monday’s price war fears saw some recovery Tuesday in early trading. ExxonMobil was up more than 7 percent in premarket trading. Chevron was up 6 percent and Valero was up 2.75 percent.
The outbreak continues to spread at a rapid clip with more than 113,000 cases worldwide. The director of the World Health Organization called the threat of a coronavirus pandemic “very real.” More than 700 cases have been confirmed in the United States, with the virus present in more than 30 states and counting. 26 Americans have died of the virus so far.

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