1. Dow set to recover about half Monday’s historic plunge
Traders work during the opening bell at the New York Stock Exchange (NYSE) on March 5, 2020 at Wall Street in New York City.
Johannes Eisele | AFP | Getty Images
U.S. stock futures were pointing to huge gains Tuesday after President Donald Trump floated a payroll tax cut and other financial relief measures to combat the negative effects of the coronavirus on the U.S. economy and American workers. The Dow Jones Industrial Average’s 900-plus-point premarket rise would recover around half of the worst sell-off since the 2008 financial crisis. Monday’s losses pushed the Dow, S&P 500 and Nasdaq close to bear market territory. All three benchmark stock measures were down 19% from last month’s record-high closings. A bear market is defined by an index or asset down at least 20% from recent 52-week highs.
2. Oil and bond yields move higher after staggering declines
Concerns about the spread of the virus and an oil price war sent investors piling into the perceived safety of bonds, sending prices higher and yields inversely to record lows Monday. The 10-year Treasury yield, which sank to just above 0.3% on Monday morning, was stabilizing around 0.7% early Tuesday. Oil prices, which plummeted 24.5% on Monday after as OPEC’s proposed production cut deal fell apart, were bouncing more than 8% on Tuesday. However, even with that advance, crude remains firmly in a bear market, down over 50% from its recent 52-week high as of the close on Monday, which was the worst single-session drop for oil since the first Gulf War in 1991.
3. Trump wants to talk about ‘a possible payroll tax cut’
Trump on Tuesday plans to meet with Senate and House Republicans to discuss “a possible payroll tax cut” and other “substantial relief” economic as coronavirus cases in the U.S. topped 750 with 26 deaths. Reducing payroll taxes would put more money into consumers’ pockets. However, some economists question whether typical stimulus measures would work during the outbreak if concerned citizens stay home and avoid spending money at restaurants or the movies. The president said on Monday night he would also look at ways to help hourly employees who could miss paychecks if they’re unable to go to work.
4. Coronavirus cases rise as Italy locks down entire country
Total global coronavirus cases increased to nearly 115,000 with deaths topping 4,000, according to figures compiled by Johns Hopkins University and Medicine. Italy, with over 9,000 cases and 463 deaths, has become the biggest hot-spot outside of China, which still has the most cases and deaths by far. The virus originated in the Chinese city of Wuhan in Hubei province in December.The Italian government expanded its lock down, asking all 60 million people nationwide to stay at home. South Korea and Iran both have cases in the 7,000s with 54 and 237 deaths, respectively.
5. Biden vs. Sanders in six states’ nominating contests
Democratic presidential hopefuls Vermont Senator Bernie Sanders (L) and Former Vice President Joe Biden (R) participate in the tenth Democratic primary debate of the 2020 presidential campaign season co-hosted by CBS News and the Congressional Black Caucus Institute at the Gaillard Center in Charleston, South Carolina, on February 25, 2020.
Jim Watson | AFP | Getty Images
Call it mini-Super Tuesday: Six states are holding primaries and caucuses in the race for the 2020 Democratic presidential nomination. Michigan’s 125 delegates are the big prize Tuesday. Former Vice President Joe Biden has led in recent polls there. Sen Bernie Sanders may need a win in Michigan to keep up with Biden, who leads the pledged delegate count 652 to 575. The other states holding contests Tuesday are Washington, Missouri, Mississippi, Idaho and North Dakota.