Stocks poised to open higher on hopes coronavirus is stabilizing

Home Depot closing at 6 p.m. local time due to COVID-19


U.S. stocks were poised to open higher Monday on signs of a slowdown in coronavirus deaths and new cases in some of the hardest-hit areas throughout the world. 

Futures for the Dow Jones industrial average jumped 750 points. The Standard & Poor’s 500 rose nearly 4%, after posting a third week of losses in the past four on Friday. 

Global markets stabilized overnight as the number of people dying appears to be slowing in New York City, Spain and Italy, news that was cautiously welcomed by leaders. But they noted that any gains could easily be reversed if people didn’t continue to adhere to strict lockdowns.

A peak in the number of new coronavirus cases will bring some clarity on how deep and protracted the economic downturn will be, analysts say.

“In the near term, we believe market performance primarily depends on how quickly economic activity can normalize following measures to contain the virus, and the extent to which policy responses can limit bankruptcies and job losses,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note.

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Wall Street sign with U.S. flags in front of the New York Stock Exchange in background

The global death toll from the pandemic has surpassed 70,000, with the number of U.S. deaths on pace to reach 10,000. There are more than 330,000 confirmed cases of coronavirus in the U.S., with 9,648 deaths, according to the Johns Hopkins University data dashboard. Almost 1.3 million cases have been confirmed worldwide.

“The spreading virus and uneven containment raise the risk of a more protracted pandemic, with the virus persisting well into the second half of 2020 before being managed or controlled,” analysts at Deutsche Bank said in a note. 


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