Dow rebounds more than 650 points a day after tanking the most since 1987 on coronavirus worries
- US stocks surged on Friday in a sharp bounce back from the worst single-day drop since 1987.
- All three major indices gained on hopes of fresh economic stimulus from the White House.
- Stimulus was also enacted globally. Central banks in Norway, Japan, and Australia cut interest rates, bought government bonds, or took other measures.
- Equities remain in bear market territory as coronavirus fears and the oil-price war loom.
- S&P 500 futures soared more than 5% to reach their upward trading limit early Thursday.
- Watch all major indices update here.
US stocks opened surged roughly 5% on Friday as Wall Street rebounded from its worst single-day drop since 1987.
The gains came after House Speaker Nancy Pelosi announced Congress and the Trump administration were nearing an economic stimulus deal on Thursday night. President Trump hinted at what the package may include in a Friday morning tweet.
Stimulus was also enacted globally. Central banks in Norway, Japan, and Australia cut interest rates, bought government bonds, or took other measures.
In premarket hours, S&P 500 futures contracts soared more than 5% to hit their upward limit in early trading, which halted trading until the market open.
Here's where major US indexes stood as of 9:40 a.m. ET Friday:
- S&P 500: 2,583.24, up 4.1%
- Dow Jones industrial average: 21,945.44, up 3.5% (745 points)
- Nasdaq composite: 7,479.99, up 3.8%
All three major US indices remain in bear-market territory as coronavirus fears and the oil-price war weigh on investor sentiments.
Global stock markets also enjoyed gains following Thursday's chaotic session. Germany's DAX jumped 8%, Britain's FTSE 100 gained 8.2%, and the Euro Stoxx 50 leaped 7.3% as of 8:45 a.m. ET.
The Dow tanked 10% on Thursday - it's biggest single-day decline since 1987 - as investors balked at President Trump's European travel ban and failure to issue a fiscal policy response to the coronavirus's economic threat.
Selling kicked off so heavily that a 15-minute marketwide trading halt was instituted within the minutes of the open. When trading resumed, the S&P 500 joined the Dow in bear market territory and cemented the end of stocks' 11-year bull run.
The Federal Reserve's announcement of unprecedented liquidity injections briefly lifted stock prices early Thursday afternoon. The central bank policy will add $1.5 trillion to the financial system by the end of the week and continue throughout March. Equities quickly pared gains following the press release and closed near intraday lows.
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