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Dow futures surge as investors weigh Biden wins, interest rate cuts

U.S. stock futures rose Wednesday as investors weighed the resurgence of former Vice President Joe Biden in the Democratic primaries and the economic impact of the coronavirus outbreak. 

Dow futures rallied 700 points while Standard & Poor’s 500 futures climbed 2.4%. 

Biden capped a strong Super Tuesday by winning Texas, the third-largest overall prize in the Democratic primaries, and at least eight other states. Bernie Sanders, a strong critic of Wall Street, won the biggest prize of Tuesday’s primaries with a victory in California. 

The gains came following a day of wild swings Tuesday after a surprise decision by the Federal Reserve to cut interest rates by half a percentage point. The move was aimed at defusing fears the coronavirus outbreak might stunt global economic activity.

China, Australia and other central banks also have cut rates to shore up economic growth in the face of anti-virus controls that are disrupting trade and manufacturing. But economists warn that while cheaper credit might encourage consumers, rate cuts cannot reopen factories that have closed due to quarantines or lack of raw materials.

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