· Dow rallies more than 1,100 points in a wild session, halves losses from Monday’s sell-off
Stocks rose sharply in wild trading on Tuesday as investors weighed the prospects of fiscal stimulus to curb slower economic growth stemming from the coronavirus outbreak.
The Dow Jones Industrial Average closed 1,167.14 points higher, or 4.9%, at 25,018.16. Tuesday’s gains for the Dow cut the index’s losses from Monday in half. Earlier in the day, the 30-stock average was down 160points. The S&P 500 was up 4.9% at 2,882.23, notching its best day since Dec. 26, 2018. The Nasdaq Composite also advanced 4.9% to 8,347.40.
President Donald Trump floated on Monday the idea of “a payroll tax cut or relief” to offset the negative impact from the coronavirus. The potential tax incentives come on top of an $8.3 billion spending package Trump signed last week.
· Asia Pacific stocks mixed as investors watch for stimulus with virus spread continuing
Stocks in Asia Pacific traded mixed on Wednesday morning as investors continue to watch for developments around government stimulus as the coronavirus continues its spread globally.
In Japan, the Nikkei 225 advanced 0.16% in early trade while the Topix index gained 0.73%. South Korea’s Kospi traded largely flat.
Stocks in Australia, however, fell in morning trade as the S&P/ASX 200 slipped more than 1%.
Overall, the MSCI Asia ex-Japan was largely flat.
National Australia Bank’s (NAB) Tapas Strickland warned in a Wednesday morning note that markets are “likely to remain volatile” as headlines around the coronavirus “continue to be on the negative side.”
Strickland, who is a director of economics and markets at the Australian lender, cited reports of the number of coronavirus cases in Italy spiking past 10,000 as well as Centers for Disease Control and Prevention Director Robert Redfield’s comments that certain areas of the U.S. are currently in “high mitigation” rather than containment.
Concerns surrounding the global coronavirus outbreak have sent markets on a roller-coaster ride in recent days. The disease has infected more than 118,000 and taken at least 4,262 lives so far, according to data compiled by John Hopkins University.
As investors watch for stimulus measures by governments to combat the coronavirus’ impact, a White House official told CNBC that U.S. President Donald Trump pitched a 0% payroll tax for employers and employees for the rest of the year during a meeting with Republican lawmakers on Capitol Hill Tuesday.
Japan also unveiled a package worth about $4 billion on Tuesday to cope with the coronavirus outbreak, according to Reuters.
Reference: Reuters, CNBC
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