Stock market news live: Stocks boosted by Trump coronavirus stimulus plans; Dow rockets over 1,000 points

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Stock market news live: Stocks boosted by Trump coronavirus stimulus plans; Dow rockets over 1,000 points
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Stocks boosted by Trump coronavirus stimulus plans; Dow rockets over 1,000 points

Stocks surged on Tuesday, offering some respite from the prior session’s gruesome sell-off that saw the Dow Jones Industrial Average post its largest-ever point drop, and its worst sell-off on a percentage basis since Black Monday of 1987.

Volatility stemming from the outbreak has seen the Dow move up or down by 1000 points or more for 7 straight days, and 11 times total in the last month, according to Yahoo Finance data. Based on the stock market’s historically steep declines over the past few weeks, market participants have already priced in a recession, according to Fundstrat head of research Tom Lee.

A day earlier, President Donald Trump had offered a grim assessment of the COVID-19 crisis, acknowledging that the U.S. “may be” heading toward a recession, and social distancing measures could drag on well into the summer months. As travel grinds to a halt, economists are increasingly bracing for a major hit to global GDP growth in 2020.

2:45 p.m. ET: NYC Mayor tells citizens to be prepared to stay homeNew York City Mayor Bill de Blasio told citizens that a “shelter-in-place” order could be announced within days, despite Governor Andrew Cuomo dismissing the legality of such an idea earlier in the day. If the mayor wins the argument, it means New Yorkers may not be able to leave their homes for an extended period of time.

“The commercial paper market has been under considerable strain in recent days as businesses and households face greater uncertainty in light of the coronavirus outbreak,” the Fed said in a statement. Half of the responses for the survey were collected prior to March 4, however, so the most recent impacts from the coronavirus on U.S. stocks and economic data were not entirely taken into account.

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