Stock futures rise sharply
U.S. stock index futures rallied early Tuesday after President Donald Trump announced that his administration will discuss a possible payroll tax relief, following Wall Street’s biggest one-day drop since the financial crisis in 2008.
Trump said he will meet with Senate and House Republicans later today, adding that they will discuss “a possible payroll tax cut or relief, substantial relief, very substantial relief, that’s big, that’s a big number.”
“We’re also going to be talking about hourly wage earners getting help so that they can be in a position where they’re not going to ever miss a paycheck,” Trump said during an evening briefing at the White House. The president is expected to hold another press briefing later today to talk about the big economic measures.
As of 5:40 a.m. ET, the blue-chip Dow futures surged 1035 points, or about 4.33% to 24,912. The S&P 500 futures advanced 123.13 points, or around 4.48% to 2,870.88 while the tech-heavy Nasdaq-100 futures indicated a gain of 366.12 points, or roughly 4.6% to 8,317.12.
Crude futures rally
Oil prices are also poised to recoup some of the brutal losses suffered in the previous session, buoyed by Trump’s announcement that he will ask Congress to pass a payroll tax cut and other quick measures to contain the growing economic turmoil caused by the coronavirus pandemic.
As of 5:40 a.m. ET Tuesday, U.S. West Texas Intermediate crude futures were up $2.39, or around 7.68%, at $33.52 per barrel. International Brent crude oil futures were at $36.58 a barrel, up $2.22, or about 6.46%.
Oil prices on Monday crashed at the worst rate since the Gulf war in 1991, amid a price war between Saudi Arabia and Russia. Saudi Arabia vowed to slash prices and increase production after Russia declined to go along with the terms of an agreement that would cut oil output by an additional 1.5 million barrels per day.
Italy imposes a nationwide lockdown over coronavirus; Japan set to unveil stimulus
In other news, Italy has gone into nationwide lockdown in an effort to curb the spread of the novel coronavirus. The country’s Prime Minister Giuseppe Conte told people to stay home and seek permission for essential travel.
All public gatherings are banned and sporting events, including Serie A soccer matches, are suspended until further notice. Universities and schools are also closed until at least April 3. “There is no more time. I will take responsibility for these measures. Our future is in our hands,” Conte told reporters on Monday.
The deadly virus so far claimed 463 lives and infected 9,172 people in Italy, the most of any European country. According to the World Health Organization, the global death toll has topped 4,000, and cases are now at over 113,000.
Meanwhile, Reuters is reporting that Japan intends to spend 430.8 billion yen ($4.1 billion) in another stimulus package to try and support its economy amid the negative impact from the outbreak.
