Stocks surge as US government seeks to support economy during outbreak

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"2">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>US stocks jumped as American president Donald Trump promised he would be &OpenCurlyDoubleQuote;going big” with plans to blunt the economic pain caused by the coronavirus outbreak&period;<&sol;p>&NewLine;<p>Markets around the world remain highly volatile as traders see a recession growing more likely – if it has not already begun&period;<&sol;p>&NewLine;<p>Tuesday’s 3&period;9&percnt; gain for the S&amp&semi;P 500 meant it clawed back less than a third of its loss from a day before – its biggest dive in more than three decades&period;<&sol;p>&NewLine;<p><&excl;--Ads1--><&sol;p>&NewLine;<p>Mr Trump wants the US government to send cheques to Americans in the next two weeks to help support them&comma; while chunks of the economy come closer to shutting down&comma; treasury secretary Steven Mnuchin said&period;<&sol;p>&NewLine;<p>Gains for stocks accelerated temporarily as Mr Trump and Mr Mnuchin spoke at a White House briefing&comma; but neither gave details about how big the stimulus could be&period;<&sol;p>&NewLine;<p>Mr Mnuchin is pitching senate Republicans on a roughly 850 billion dollar &lpar;£691 billion&rpar; stimulus plan to help the economy&comma; including relief for small businesses and the airline industry&period;<&sol;p>&NewLine;<p>Investors have been waiting for Washington to offer more aid for the economy&period;<&sol;p>&NewLine;<p>After flipping between gains and losses on Tuesday morning&comma; stocks turned decisively higher after the US Federal Reserve revived a program first used in the 2008 financial crisis to help companies get access to cash for very short-term needs&period;<&sol;p>&NewLine;<p>This is the latest in a string of big&comma; emergency moves by the Fed and other central banks around the world to support the economy and smooth operations in markets&period;<&sol;p>&NewLine;<figure id&equals;"attachment&lowbar;152014" aria-describedby&equals;"caption-attachment-152014" style&equals;"width&colon; 600px" class&equals;"wp-caption aligncenter"><img class&equals;"size-full wp-image-152014" src&equals;"https&colon;&sol;&sol;londonglossy&period;com&sol;wp-content&sol;uploads&sol;2020&sol;03&sol;D91D0B9A-3FEC-4035-BF2C-BFB36D47203F&period;jpeg" alt&equals;"" width&equals;"600" height&equals;"400" &sol;><figcaption id&equals;"caption-attachment-152014" class&equals;"wp-caption-text">The US stock market plunged to its worst day in more than three decades on Monday<&sol;figcaption><&sol;figure>&NewLine;<p>No-one expects such moves to fix the health crisis&comma; but investors hope they can help blunt the economic blow&period;<&sol;p>&NewLine;<p>Barry Bannister&comma; head of institutional equity strategy at Stifel&comma; said&colon; &OpenCurlyDoubleQuote;Government tends to show up late to the party with a bazooka&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;It’s a bit of an overreaction&comma; but that’s to be understood as normal for policymakers&period;”<&sol;p>&NewLine;<p>Ultimately&comma; investors say they need to see the number of infections slow before markets can find a bottom&period;<&sol;p>&NewLine;<p>Worldwide cases now exceed 185&comma;000&period; In the San Francisco area&comma; nearly seven million people were all but confined to their homes in the nation’s most sweeping lockdown&period;<&sol;p>&NewLine;<p><&excl;--Ads2--><&sol;p>&NewLine;<p>Trading was unsettled around the world&period; European stocks swung from gains to losses and back to gains&period;<&sol;p>&NewLine;<p>South Korean stocks fell to their fifth straight loss of 2&period;5&percnt;&comma; but Japanese stocks shook off an early loss to edge higher&period;<&sol;p>&NewLine;<p>The Dow Jones Industrial Average see-sawed through the day&period; It went from up 600 points to down 300 to up 1&comma;190 and then pulled back again&period;<&sol;p>&NewLine;<p>It was up 531 points&comma; or 2&period;6&percnt;&comma; in early afternoon trading&period; A day earlier&comma; it lost nearly 3&comma;000 after Mr Trump said a recession may be on the way&period;<&sol;p>&NewLine;<p>The S&amp&semi;P 500 is still roughly 26&percnt; below its record set last month and is close to where it was in late 2018&comma; erasing most of the best year for stocks in decades&period;<&sol;p>&NewLine;<p>Stocks have had a few rebounds since the market began selling off in mid-February on worries that Covid-19 will slam the economy and corporate profits&period;<&sol;p>&NewLine;<p><&excl;--Ads3--><&sol;p>&NewLine;<p>All have ended up short-lived&period;<&sol;p>&NewLine;<p>The S&amp&semi;P 500 has had four days in the last few weeks where it surged more than 4&percnt;&comma; a remarkably large amount in normal times&comma; and has slumped more than 2&period;8&percnt; the following day each time&period;<&sol;p>&NewLine;<p>The virus has spread so quickly that its effects haven’t shown up in much US economic data yet&period;<&sol;p>&NewLine;<p>A report on Monday about manufacturing in New York State was the first piece of evidence that manufacturing is contracting due to the outbreak&period; On Tuesday&comma; a report showed that retail sales weakened in February&comma; when economists had been expecting a gain&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;The global recession is here and now&comma;” S&amp&semi;P Global economists wrote in a report Tuesday&period;<&sol;p>&NewLine;<p>They say initial data from China suggests its economy was hit harder than expected&comma; though it has begun to stabilise&period;<&sol;p>&NewLine;<p><&excl;--Ads4--><&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Europe and the US are following a similar path&comma;” the economists wrote&period;<&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68e294bbdec2a">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; function &lpar;&rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; false &equals;&equals;&equals; 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