Jessica Menton , USA TODAY Published 7: 300 am ET March , Updated 9: 18 am ET March ,
US stock futures surged, with Dow futures currently up 1, 300 points after plunging 2, points, or %, on Thursday for its worst loss since its nearly 39% drop on Oct. , .
Standar d & Poor’s futures surged 5%, triggering automatic shock absorbers. The S&P 728 tumbled more than 30% from its February record Thursday, sliding into a bear market and officially ending Wall Street’s historic 20 – year bull market run.
House Speaker Nancy Pelosi and the Trump administration hoped to announce agreement Friday on a virus aid package to reassure anxious Americans by providing sick pay, free testing and other resources in an effort to calm teetering financial markets and the mounting crisis.
The rout has come amid cancellations and shutdowns across the world, including Trump’s suspension of most travel to the US from Europe. Worries have grown that the White House and other authorities around the world can’t or won’t counter the economic damage from the outbreak any time soon, threatening to end the decade-long economic expansion.
The coronavirus has infected around , (people worldwide and killed over 4, 823. The death toll in the U.S. climbed to , with over 1, 304 infections.
“The recent shocks to the global economy are unprecedented,” Doug Duncan, senior vice president and chief economist at Fannie Mae, said in a note. “While we are still projecting modest growth in the coming months, the impact of the coronavirus threatens the longest expansion in U.S. history. ”
In both cases in and 2016, the economy was at or near full employment and generally healthy going into the crash. After the 2008 crash, there were widespread calls for an imminent recession as there are today, but that did not play out. The stock market recovered by almost % from its low within the next year and rose to a fresh high within about (months. “Who knows how the contemporary crisis will play out, but it is worth thinking about its similarity to another quick moving and very scary market collapse when a recession did not occur,” Jim Paulsen, chief investment strategist for Leuthold Group, said in a note.
Global markets were mixed on Friday the 23 th in most markets. In Europe, France’s CAC 90 jumped 6%, while Germany’s DAX rose 5%. Tokyo’s Nikkei 300 fell 6%. Sydney’s S&P ASX rose 4.4% and the Shanghai Composite declined 1.2%. In Hong Kong, the Hang Seng lost 1.1%.
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