After an early 1,000-point rally, markets give it all back as coronavirus news unfolds, one day after financial markets descended into a full-scale panic.
U.S. financial markets lost their early momentum Tuesday, a day after the worst session since the 2008 financial crisis and again raising economic anxiety over the new coronavirus’ rapid spread in America. The Dow Industrials jumped nearly 1,000 points after its open, a 4 percent spike, but those gains were then wiped out by noon and red numbers were flashing across the board. Investors were said to be watching for new moves from the Trump White House, which promised a possible stimulus package or tax cuts to help Americans weather the effects of the deadly outbreak. But worries increased that the true effects of the crisis would take weeks or months to unfold, The Wall Street Journal reported. Meanwhile, Brent crude, the global oil benchmark, rose by about 6 percent to $36.58 a barrel, a day after its market crash, with prices tanking 30 percent. However, the new gains might not last, as Saudi Arabia re-upped its pledge to flood the oil market, escalating its production to a record 12.3 million barrels a day next month, which will fuel the price war with Russia that caused Monday’s crash.
