As President Trump was announcing his emergency plans to deal with the coronavirus pandemic on Friday, the market surged, with the biggest gains seen since 2008. Marketwatch:
U.S. stocks on Friday finished with gains of more than 9% as President Donald Trump declared a national emergency to help combat the coronavirus and its fallout, a day after the Dow and the S&P 500 suffered their biggest one-day plunge since the October 1987 crash. The Dow Jones Industrial Average DJIA, +9.36% rose 1,985,or 9.4%, to 23,186, the S&P 500 index SPX, +9.28% ended 9.3% higher at 2,711, while the Nasdaq Composite Index COMP, 9.346% finished the session up 9.3% at 7,874. All three benchmarks booked their best one-day gains since 2008.
Stocks have a long way to go to regain the losses that began in the middle of February, but this rebound is welcome news for investors and may signal a reversal of the COVID-19 panic.
The president declared a national emergency and plans to rely on technology for remote doctor’s appointments; allowing doctors in other states to practice anywhere needed to help with possible medical needs; and the lifting of regulations to make healthcare function smoother.
Financial services and tech stocks responded to the news with monster gains on Friday. Trump’s plan was laid out around 3:40 p.m. and set off the surge ahead of the market close.
The president gathered CEOs from private sector companies like Walmart, Walgreens, CVS, and Quest Diagnostics to detail a plan to test anyone with symptoms that match COVID-19 in a drive-up testing area in the companies’ parking lots, allowing them to avoid exposing others or being exposed in waiting rooms or hospitals. This news seemed to have eased fears and set off a welcome market rebound.
The White House will be releasing a website where you can input your symptoms, and if they fit into the high-risk category, you will be sent to a parking lot near you at one of the major companies named for testing.
The president urged the public to use common sense, follow health guidelines, and cooperate with state officials.
Trump also announced that he is suspending interest on all federal student loans until further notice and is buying large quantities of oil for our national reserves. “No nation is more prepared or equipped to face down this crisis,” he said.
You can hear the full speech below starting around the 14:00 mark.
Megan Fox is the author of “Believe Evidence; The Death of Due Process from Salome to #MeToo,” and host of The Fringe podcast. Follow on Twitter @MeganFoxWriter