Investors will be watching US stocks today, with markets closing higher on Thursday after another volatile trading session.
Context: US stocks closed higher on Thursday, as governments around the world pledged their support for their respective economies during the coronavirus outbreak. Governments are gearing up to extend as much financial support as possible, as the pandemic threatens to bring businesses and economies to their knees amid global lockdowns and restrictions on movement of people and supplies.
Details: After shedding more than 1,300 points on Wednesday, the Dow made some recovery yesterday. The index gained 1% after the Federal Reserve announced a Money Market Mutual Fund Liquidity Facility and the ECB declared an asset-purchase program. Reports of the US Congress discussing a $1 trillion fiscal stimulus package also grabbed investor attention.
The Dow climbed 188.27 points to close at 20,081.19 on Thursday. The S&P 500 gained 0.5% to reach 2,409.39, while the Nasdaq 100 jumped 2.3% to end the day at 7,150.58.
Shares of Tesla jumped around 18% after Morgan Stanley upgraded the stock, while rental-car stocks recovered, with Hertz Global and Avis Budget Group climbing more than 22% each.
Why it matters: Markets are responding to every bit of positive or negative news, while governments grapple with responding to the coronavirus threat. Meanwhile, key US economic reports have started reflecting the coronavirus impact on the economy. US initial jobless claims surged by 70,000 to 281,000 in the week ended March 14, while the Philadelphia Federal Reserve manufacturing index dipped to -12.7.
Investors will need to focus on the fundamental strength of the assets they choose to hold. And, traders will have to exercise more discipline
What to watch: US stocks are expected to continue their upward momentum today. US stock futures trading so far points towards a higher open on Wall Street. Markets will continue to keep an eye on support from the Federal Reserve to get the economy back on track as well as on the number of confirmed coronavirus cases and deaths.
The US economic calendar is light today, with the only important report showing existing home sales data. US existing home sales, which fell 1.3% to an annual rate of 5.46 million units in January, are expected to rise 0.7% in February.
Other Markets: European indices were trading higher at 10:10am GMT, with the FTSE 100, German 30 and French 40 up by 3.64%, 5.84% and 6.16%, respectively.