Coinspeaker
Dow Futures Jump 800 Points after Brutal Monday as Trump Eyes Payroll Tax Cut

After the most disturbing day in newer U.S. market history (since 1991 Gulf War), as of 2:30 am ET Tuesday, futures on the Dow Jones Industrial Average started growing by 794 points, indicating an opening jump 839 points on Tuesday. S&P 500 futures and Nasdaq 100 futures also pointed to a higher open for the two indexes.

Just for a quick reminder – yesterday coronavirus fears, together with the toppling price of oil, drove down the equities on the United States stock markets, causing the biggest one-day point drop for the Dow Jones Industrial Average in history.

The Dow plummeted 7.79%, as the Dow Inc (NYSE: DOW) sunk 21.66%. The Nasdaq 100 slid 6.83%, with Tesla Inc (NASDAQ: TSLA) losing 13.57%. The S&P&500 tumbled 7.60%, as oil companies plunged. Apache Corporation (NYSE: APA) fell the most, shrinking over 54.69%.

However, then the situation began rolling out. United States regulators firstly pledged in a joint statement to work with banks in order to “provide appropriate regulatory assistance” to institutions under their supervision in meeting financial needs amid the coronavirus outbreak.

It is also noted that “financial institutions should work constructively with borrowers and other customers in affected communities,” and that “prudent efforts that are consistent with safe and sound lending practices should not be subject to examiner criticism.”

FDIC, Consumer Financial Protection Bureau, the Conference of Bank State Supervisors, the Federal Reserve, National Credit Union Administration and Officer of the Comptroller of the Currency all signed this statement.

After that, U.S. President Donald Trump came to say that he will discuss a possible “major” payroll tax cut in the Senate tomorrow with Majority Leader Mitch McConnell.

Trump explained that the payroll tax cut will be considered in order to prevent the negative economic impact caused by the coronavirus outbreak in the country. During the same briefing, Treasury Secretary Steven Mnuchin asserted that the U.S. has “the most resilient economy in the world,” adding that, despite the coronavirus impact, he’s sure the country’s economy is “in a good position.”

Mnuchin insisted the government will use all available tools to help the economic stability, with the focus on small businesses and companies hit the hardest by the outbreak.

Lastly, he assured that there are no risks of Americans losing their jobs due to being unable to work because of the epidemic, adding that the administration will support businesses most affected by the virus crisis and relieve them from negative impact.

After that, the Dow Jones futures immediately surged over 500 points or 2.37%. The Nasdaq 100 soared by 2.34% at the same time. A minute later, the S&P 500 surged 2.48%.

Good thing is that prices of crude oil also rebounded at the start of the trading session on Tuesday, rising over 7% after yesterday’s dip of over 30% in what was the crude’s biggest collapse in almost three decades. West Texas Intermediate for April settlement jumped 8.29% at 8:18 am ET to $32.62 per barrel. At the same time, Brent futures for delivery in May soared 7.03% to $35.77 a barrel.

Stephen Innes, chief market strategist at AxiTrader said:

“We are on the verge of a credit crisis. A fiscal response could be justified not because S&Ps are down, or oil is down, but because we are potentially on the cusp of a credit crisis driven by cash flow shortages and bankruptcies across a meaningful list of industries.”

Most stocks went south as well but started to rebound in after-hours trading. Tesla (NASDAQ: TSLA) grew by 4.57% to $635.80. Nvidia Corporation (NASDAQ: NVDA) went up by 3.19% to $253.26 while Netflix Inc (NASDAQ: NFLX) jumped 2.65% to $355.67. Google-parent Alphabet Inc (NASDAQ: GOOGL) hopped 1.50% to $1,234.00 while the Amazon.com Inc (NASDAQ: AMZN) went up by 2.24% to $1,841.00.

Dow Futures Jump 800 Points after Brutal Monday as Trump Eyes Payroll Tax Cut

Similar to Notcoin - Blum - Airdrops In 2024

origin »

208 +