Stock market has biggest one-day gain ever after Trump press conference

Biggest percentage gain since 2008.

Posted: Mar 13, 2020 4:45 PM

NEW YORK (AP) — Wall Street roared back from its worst day in 30 years Friday with a broad rally that sent the Dow Jones Industrial Average nearly 2,000 points higher — its biggest point gain ever — after President Donald Trump declared the coronavirus pandemic a national emergency.

Fueled by a late-day surge while Trump was speaking, the Dow saw its largest percentage gain since 2008. The rally recouped many of the losses from a day earlier, when the index saw its worst slide since the Black Monday crash of 1987 and European indexes had one of the worst drops on record. The major indexes each closed with gains of more than 9%.

The session capped a dizzying week on Wall Street, with wild swings driven largely by uncertainty over how much damage the coronavirus would cause to the global economy. By Thursday, the Dow had suffered two drops of more than 2,000 points and the longest-ever bull market had ended.

Then on Friday stocks rallied, shooting sharply upward in the last half-hour of trading as investors appeared to gain confidence that the Trump administration has a plan to combat the outbreak from both a health care and economic perspective.

Despite Friday's pickup, the market was on track for its worst week since October 2008, during a global financial crisis. In just a few weeks, U.S. stocks have lost all the gains made during 2019, one of the best years for the market in decades. All the major indexes are in what traders call a bear market.

Investors have been clamoring for strong action from the U.S. government to combat the outbreak's effect on businesses and workers. News that the White House and Congress were close to announcing an agreement on a package to provide sick pay, free testing and other resources helped boost the market.

“We’re finally getting that a little late to the party, but it’s better to be late to the party then not to come to the party,” said Ryan Detrick, senior market strategist at LPL Financial. He said the stimulus plan should help cushion the financial effects on people and businesses.

Stocks jumped in the early going Friday after Treasury Secretary Steven Mnuchin said on CNBC that the two sides were “very close to getting this done.” But during a late-afternoon White House press conference, Trump said the White House and Congress had yet to agree on a broader aid package. He said he doesn't believe House Democrats are "giving enough."

Speaker Nancy Pelosi said the House would approve its own coronavirus aid package and urged the Trump administration and congressional Republicans to “put families first” by backing the effort to provide Americans with relief.

The market's rout intensified this week amid a torrent of cancellations and shutdowns worldwide. Business closures have fueled fear that a severe pullback in consumer and business spending will tip the U.S. economy into a recession and wreck corporate profits.

Meanwhile, Warren Buffett said Friday that the annual shareholder meeting for Berkshire Hathaway will be streamed live in early May without any attendees, apart from maybe a select number of journalists. The meeting normally draws a crowd to rival professional sporting events.

The virus has infected over 137,000 people worldwide. More than 5,000 have died, but half of those who had the virus have already recovered. The pandemic's new epicenter is Europe. In the United States, cases have topped 1,600, while 41 people have died, according to the Centers For Disease Control and Prevention.

Friday's rally was broad, with technology stocks accounting for a big slice of the gains. Shares in cruise line operators, airlines and hotels — among the hardest-hit stocks as people canceled vacations and companies shut down business trips — headed higher.

Investors' anticipation of a government stimulus effort and a rate cut by the Fed next week likely put traders in a buying mood, though it's not unusual for stocks to rebound a day after a big decline, something Wall Street calls a “dead cat bounce."

“I don't know if I would call this a dead cat bounce, but I would certainly not call it a trend,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. “Maybe it reflects a little more optimism that we're getting a fiscal impulse that will help support the economy, and by extension, the market while we get through this transitory period of economic weakness.”

On Thursday, the Federal Reserve unveiled a massive short-term lending program to try to help smooth trading in U.S. Treasurys. Many economists expect the Fed will move to cut interest rates by a full percentage point, to nearly zero, at its meeting of policymakers next Wednesday.

This week's historic sell-off helped to wipe out most of the big gains since President Trump took office in 2017. After hitting an all-time high on Feb. 19, the S&P 500 fell more than 20%, officially ending Wall Street's unprecedented bull-market run of nearly 11 years. The slide into a bear market has been the fastest since World War II.

The selling has been so swift and sharp that there remains the potential for a significant bounce after the virus and its impact begin to recede, Detrick said. The economy was already on solid footing, and well-known companies like Disney and Apple were could help lead a recovery.

He also said there could be a recession on the horizon, but it would likely be mild. "It could be a shallow, quick, violent, scary recession, but one that bounces back quickly," Detrick said.

For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illnesses, including pneumonia. The vast majority of people recover from the virus in a few weeks.

For now, investors must wait for more information.

"What markets are trying to do is understand what the cycle of the virus is, and then the human reaction to it," said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 139444

Reported Deaths: 2440
CountyConfirmedDeaths
Hennepin34988995
Ramsey14471364
Dakota10132138
Anoka9160153
Washington623372
Stearns608248
Scott354934
Olmsted335930
St. Louis314271
Wright265315
Clay246443
Nobles231918
Blue Earth20857
Carver18677
Kandiyohi17835
Sherburne176322
Rice168310
Mower153918
Winona129619
Chisago11142
Crow Wing108322
Benton10099
Lyon10076
Waseca9419
Beltrami9278
Otter Tail9217
Todd8726
Morrison8029
Steele7873
Polk7864
Itasca77117
Nicollet75618
Douglas7344
Freeborn7004
Le Sueur6516
Goodhue63311
Martin61918
McLeod6154
Becker6044
Isanti5835
Watonwan5814
Pine5630
Carlton4832
Chippewa4693
Mille Lacs43216
Hubbard4233
Cass4055
Dodge4050
Wabasha4050
Pipestone36117
Rock3555
Meeker3483
Brown3353
Roseau3000
Redwood29411
Yellow Medicine2946
Murray2913
Cottonwood2900
Fillmore2650
Renville26313
Sibley2623
Wadena2573
Faribault2440
Kanabec23010
Houston2201
Jackson2191
Swift2122
Pennington2091
Unassigned19553
Lincoln1910
Aitkin1882
Stevens1861
Koochiching1765
Pope1650
Big Stone1531
Lac qui Parle1453
Wilkin1424
Marshall1371
Lake1290
Clearwater1281
Mahnomen1282
Norman1280
Grant1024
Red Lake822
Traverse580
Kittson500
Lake of the Woods451
Cook180

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 119931

Reported Deaths: 1677
CountyConfirmedDeaths
Polk19440289
Woodbury735998
Johnson596531
Black Hawk5862102
Linn5823132
Dubuque538358
Scott474442
Story408218
Dallas352547
Pottawattamie333245
Sioux249817
Buena Vista227912
Marshall209036
Webster192315
Plymouth170331
Wapello157362
Clinton151627
Muscatine151258
Des Moines147310
Cerro Gordo146127
Crawford137014
Warren12947
Carroll118913
Jasper115034
Henry10955
Marion104811
Tama98637
Lee98311
Delaware81713
Dickinson7769
Wright7481
Boone7369
Mahaska72824
Bremer7029
Harrison68415
Washington67711
Jackson6623
Benton6222
Lyon5598
Clay5474
Louisa53415
Winnebago50619
Winneshiek4969
Cedar4947
Hardin4887
Kossuth4850
Hamilton4794
Buchanan4755
Poweshiek47211
Jones4704
Clayton4613
Floyd45211
Emmet44620
Iowa4299
Page4190
Guthrie41315
Mills4133
Cass4123
Cherokee4112
Sac4074
Butler3963
Franklin39318
Shelby3932
Fayette3924
Allamakee3879
Madison3713
Chickasaw3691
Clarke3573
Humboldt3503
Hancock3394
Grundy3326
Palo Alto3262
Calhoun3234
Osceola2930
Mitchell2881
Howard2819
Monroe26411
Union2635
Taylor2522
Jefferson2471
Monona2472
Pocahontas2382
Appanoose2343
Fremont2121
Lucas2106
Ida2082
Adair1911
Greene1890
Montgomery1877
Davis1854
Van Buren1842
Keokuk1711
Decatur1600
Audubon1561
Worth1460
Wayne1343
Ringgold922
Adams841
Unassigned90
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