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.

Cases: 445047

Reported Deaths: 5955
CountyCasesDeaths
Hennepin924911470
Ramsey39703735
Dakota32788331
Anoka30811360
Washington20004225
Stearns17775185
St. Louis13546240
Scott1189996
Wright11548102
Olmsted1035775
Sherburne815765
Carver691436
Clay648478
Rice600166
Kandiyohi552871
Blue Earth538033
Crow Wing479673
Otter Tail453464
Chisago449732
Benton416785
Winona386246
Douglas372466
Nobles366746
Mower362328
Goodhue343657
Polk327756
McLeod323144
Morrison310043
Beltrami308746
Lyon299835
Itasca282643
Becker281738
Isanti281141
Carlton278143
Steele27119
Pine265113
Freeborn241320
Todd230929
Nicollet223336
Brown213734
Mille Lacs212845
Le Sueur208515
Cass206123
Meeker198533
Waseca188816
Martin169126
Wabasha16883
Roseau165316
Hubbard148338
Redwood139227
Renville136539
Houston135313
Dodge13304
Chippewa130832
Cottonwood126518
Fillmore12215
Wadena119416
Rock109512
Sibley10797
Aitkin107133
Watonwan10618
Faribault104615
Pennington97715
Kanabec97218
Pipestone93823
Yellow Medicine93314
Murray8655
Jackson85010
Swift83018
Pope7355
Marshall70115
Stevens6978
Clearwater68514
Lac qui Parle65616
Lake62915
Wilkin6229
Koochiching59010
Lincoln4821
Big Stone4543
Unassigned43468
Grant4257
Norman4228
Mahnomen4087
Kittson37019
Red Lake3164
Traverse2473
Lake of the Woods1801
Cook1130

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 303065

Reported Deaths: 4267
CountyCasesDeaths
Polk45335447
Linn17673274
Scott15356163
Black Hawk13648236
Woodbury12945175
Johnson1202149
Dubuque11300149
Pottawattamie8934112
Dallas881171
Story863434
Webster467471
Cerro Gordo462968
Sioux453356
Clinton448361
Warren437538
Marshall425561
Buena Vista391529
Muscatine386177
Des Moines380641
Plymouth348868
Wapello340898
Jasper319658
Lee313530
Marion301752
Jones269649
Henry263230
Carroll253034
Bremer242048
Crawford228122
Boone216217
Washington214231
Benton208544
Jackson190831
Mahaska190736
Tama185657
Dickinson184226
Delaware172236
Kossuth170543
Clay166019
Wright162724
Fayette159522
Buchanan158023
Hamilton157829
Winneshiek154819
Harrison154462
Hardin153929
Cedar151419
Clayton150748
Butler146424
Page143715
Cherokee138127
Floyd137936
Mills136016
Lyon133632
Poweshiek132324
Hancock128824
Allamakee126827
Iowa122822
Calhoun12209
Grundy120026
Jefferson119524
Madison11869
Winnebago118229
Mitchell115634
Louisa114130
Cass112541
Chickasaw110512
Emmet110231
Sac110215
Appanoose109638
Union108122
Humboldt104219
Guthrie102224
Shelby101326
Franklin101218
Unassigned9210
Palo Alto9019
Keokuk84325
Montgomery84022
Howard82519
Monroe80518
Clarke7817
Pocahontas77211
Ida73830
Greene6887
Davis68721
Adair68620
Lucas6468
Osceola6349
Monona63316
Worth5983
Taylor5919
Fremont5036
Van Buren49412
Decatur4784
Ringgold4269
Wayne41421
Audubon4108
Adams2953
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