Dow rises 150 points as it looks to snap 7-day losing streak
As China reels from the coronavirus outbreak and works to get back online, fast food chains are exploring a “new normal.” From contactless delivery to extreme sanitizing, stores are making efforts to stop the spread of the virus while staying open. CNN’s David Culver reports.
US stocks are rebounding on Monday morning, paring last week’s coronavirus-linked losses.
Stocks are coming off their worst week since the financial crisis, during which the Dow dropped 12.4%, while the S&P 500 plunged 11.5%. The Dow also recorded its worst one-day point drop in history on Thursday.
The Dow opened up 300 points, or 1.2% higher, on Monday, before giving up some of its gains. It was most recently up 150 points.
The S&P kicked off around 1% higher. The two indexes are on track to snap a seven-day losing streak. The Nasdaq Composite opened up 1.1%.
All three indexes entered a correction last week.
Investors are pushed and pulled into different directions by headlines about the novel coronavirus outbreak. On the one hand, the Organization for Economic Cooperation and Development warned Monday that the outbreak could significantly slow down global growth.
Meanwhile, hopes for stimulus action from the world’s central banks are keeping investors from throwing in the towel. The Bank of Japan said it would provide “ample liquidity” to keep financial markets stable and the Bank of England also pledged to do what’s necessary for the British economy’s stability.
The Federal Reserve next meets on March 18 and market expectations for a half-percentage point interest rate cut are at 100%, according to the CME’s FedWatch Tool.
That said, Fed officials have been speaking out against immediate rate cuts and Fed Chairman Jerome Powell said last week that “the fundamentals of the US economy remain strong.”