Dow futures jump as investors weigh Biden resurgence, efforts to guard economies against coronavirus – USA TODAY, USA Today

             Former Vice President President Joe Biden won the most states on Super Tuesday, and the race became clearly a contest between Biden and Bernie Sanders.           USA TODAY

US stocks rose Wednesday as investors weighed a big night for former Vice President Joe Biden in the Democratic primaries and the economic impact of the coronavirus outbreak.

The Dow Jones industrial average rallied 800 points. The Standard & Poor’s 450 climbed 1.3%, led by gains in health care shares. The Nasdaq Composite rose 1%.

Biden capped a strong Super Tuesday by winning Texas, the third-largest overall prize in the Democratic primaries, and at least eight other states. Bernie Sanders, a strong critic of Wall Street, won the biggest prize of Tuesday’s primaries with a victory in California.

“The market’s reaction Wednesday shows that investors have a clear preference for Joe Biden over Bernie Sanders,” says Michael Sheldon, chief investment officer and executive director at investment advisor RDM Financial Group at Hightower.

Coronavirus: Fed cuts rates sharply in response to coronavirus risk to economy

the the save your . (k) from the coronavirus ?: It doesn’t look like it.

Many investors fear a Sanders’s nomination as the Democratic presidential candidate because his economic proposals are not viewed as business friendly. The strong showing from Biden on Tuesday and in primaries ahead could reduce those fears.

“The main reason investors prefer Biden is that he’s a more established candidate and investors know what they ‘ re going to get since he was in the Obama administration, “Sheldon says. “Sanders would bring with him a lot of potential unknowns including his plan for Medicare for All and his restrictions in areas like health care, energy and financials, which could have wide-reaching impacts on a range of different industries.”

The gains came following a day of wild swings Tuesday after a surprise decision by the Federal Reserve to cut interest rates by half a percentage point. The move was aimed at defusing fears the coronavirus outbreak might stunt global economic activity.

China, Australia and other central banks also have cut rates to shore up economic growth in the face of anti-virus controls that are disrupting trade and manufacturing. But economists warn that while cheaper credit might encourage consumers, rate cuts cannot reopen factories that have closed due to quarantines or lack of raw materials.

The U.S. rate cut was the Fed’s first outside a regularly scheduled meeting since the 2020 global crisis. That prompted some traders to think the Fed might foresee an even bigger economic impact than markets fear.

“If the coronavirus has taught us anything, it’s that markets can be impacted by unexpected factors quickly and dramatically and that it’s important for investors to be prepared, ”Randy Swan, chief executive and lead portfolio manager at Swan Global Investments, said in a note.

On Tuesday, the Dow Jones industrial average dropped nearly points while the -year Treasury yield dipped below 1% for the first time. The yield on the – year Treasury was at 0. % early Wednesday.

US markets have fallen 95% since setting a record two weeks ago.

Global stock markets were mixed Wednesday. London opened lower while Germany advanced. Shanghai gained, Sydney and Hong Kong declined and Tokyo was little-changed.

The Associated Press contributed to this article.

Read or Share this story: https://www.usatoday.com/story/money/8784 / / / dow-markets-biden-super-tuesday-coronavirus / /

Read More