Futures are pointing to a 800-point gain for the Dow Jones at press time after President Donald Trump said his administration will ask the Congress for a payroll tax cut and other economic measures as a response to the impact of the coronavirus epidemic.
Trump made the remarks during a briefing in the White House press room of the coronavirus task force, saying that his administration is seeking “very substantial relief” to the payroll tax. Trump also said he was looking for possible ways of reducing the financial impact of the virus on hourly wage workers so that they “don’t get penalized for something that’s not their fault.”
“We’re also going to be talking about hourly wage earners getting help so that they can be in a position where they’re not going to ever miss a paycheck,” the president added, per ABC.
Why It Matters
Trump’s proposal comes after all major averages cratered by more than 7% during the previous trading session with The Dow nosediving 2,000+ points, its single largest one-day point decline in history.
The yield on the 10-year Treasury also fell to a record low, while oil prices, which further affected the market’s negative sentiment, sank 24%.
Trump said he would hold a press conference Tuesday to outline his initiative.
Futures Price Action
As of writing, S&P 500 traded 3.27% higher at 2,836.75. Dow Jones is 718 points higher at 24,607.90. Nasdaq gained 3.44% at 8,223.75. Other positive market considerations include a retreat in Treasuries and a rebound in oil prices. The benchmark 10-yr yield is up 14 basis points to 0.64%, and WTI crude is up $2.41, or 7.74%, to $33.56 per barrel.