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Dow Is Ready for Its 'Dead-Cat Bounce'

Dow futures point to a gain of more than 1K points at the open
By Newser Editors,  Newser Staff
Posted Mar 10, 2020 6:11 AM CDT
Updated Mar 10, 2020 6:33 AM CDT

(Newser) – The seesaw continues: After Monday's historic awfulness, the US stock market is expected to see a big surge at the opening bell Tuesday morning. Dow futures were up more than 4%, suggesting an initial rise of around 1,100 points, reports CNBC. The S&P 500 looks poised for a similar percentage leap. The bounce comes after President Trump floated a series of possible relief efforts Monday afternoon, including a payroll tax cut and help for hourly wage workers, per NPR. "We are going to take care of and have been taking care of the American public and the American economy," Trump said. Meetings with lawmakers were to follow, though Democrats including Chuck Schumer complained they were being left out of the loop.

Elsewhere, markets in Asia and Europe also rose Tuesday. "You could call it a dead-cat bounce," Altaf Kassam of State Street Global Advisors tells the Wall Street Journal. "If there’s more fiscal and local economic policy by governments, that could be a good Band-Aid to staunch the bleeding." The Journal points to other optimistic signs: The yield on the 10-year Treasury rose from historic lows, suggesting the frenzied rush to safer havens has eased up a bit, and the price of oil rose about 5% after Monday's big losses. (Read more COVID-19 stories.)

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