Global stocks and US stock market futures dropped late Wednesday with futures for the three major US indexes falling by more than 4.5%. The drop came after President Donald Trump announced several steps the US will take as it grapples with the coronavirus pandemic. Trump said the US will ban all travel from Europe by non-US citizens for thirty days. He added that the "prohibitions will not only apply to the tremendous amounts of trade and cargo, but various other things as we get approval. Anything coming from Europe to the United States is what we are discussing," before walking back the comments in a tweet after the speech. Visit Business Insider's homepage for more stories.
US stock futures and markets around the world slid late Wednesday night as concerns about the economic fallout from the coronavirus pandemic continued to dominate. Futures for the three major US indexes were down sharply in after-hours trading with S&P 500, Nasdaq, and Dow Jones industrial average futures all down roughly 4%. Futures do not correlate directly with trading during regular hours, but the slides came just hours after the Dow officially fell into bear market territory, meaning the index was down 20% from its recent heights. The move ended the longest bull market run in history for the index, which started on March 9, 2009. The S&P 500 and Nasdaq were just short of entering bear markets. Global stocks also continued their tumbles with Japan's Nikkei index down more than 4% and the Australian S&P/ASX 200 down more than 6%. China's Shanghai Composite index was looking slightly better, but still off by more than 1%. The drop-off came after President Donald Trump announced several steps the US will take to respond to the coronavirus pandemic. Trump said the US will ban all travel from Europe by non-US citizens for thirty days. He added that the "prohibitions will not only apply to the tremendous amounts of trade and cargo, but various other things as we get approval. Anything coming from Europe to the United States is what we are discussing." But the White House and the president himself scrambled to clarify his comments as futures tanked in response to his announcement. "Hoping to get the payroll tax cut approved by both Republicans and Democrats, and please remember, very important for all countries & businesses to know that trade will in no way be affected by the 30-day restriction on travel from Europe. The restriction stops people not goods," Trump tweeted, contradicting his earlier remarks. The World Health Organization officially classified coronavirus, which leads to a disease called COVID-19, as a pandemic on Wednesday. More than 125,000 people have been infected across the globe and there have been more than 4,500 deaths. At least 1,240 people in 42 states and Washington, DC, have tested positive for coronavirus, according to The New York Times, and at least 37 patients with the virus have died. Financial markets have taken a huge hit as the virus continues to spread and more and more countries implement restrictions on travel and day-to-day work.Join the conversation about this story » NOW WATCH: A law professor weighs in on how Trump could beat impeachment
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Global stocks are surging after pharmaceutical giant Gilead said it's making progress on a drug to treat coronavirus
Global stocks were bouncing Friday after pharma giant Gilead announced progress in developing a drug to...Global stocks were bouncing Friday after pharma giant Gilead announced progress in developing a drug to treat the coronavirus. US futures rose sharply, with all three major indexes set to gain more than 2% at the open. Investors shrugged off poor economic data from China, which posted a GDP fall of 6.8% in the first quarter, its first contraction in over 40 years. Visit Business Insider's homepage for more stories. US futures were bouncing Friday as investors shrugged off China's first economic contraction in more than 40 years, and focused on progress being made in developing a drug to treat the coronavirus and President Trump's plans to reopen the US economy. Gilead Sciences reported overnight that an antiviral drug called Remdesivir is delivering positive results in treating COVID-19 in a University of Chicago Trial, boosting markets, with investors betting that a successful drug trial could pave the way for the easing of global lockdowns. US futures rose on the three major indexes with the S&P 500, the Dow Jones Industrial Average, and the Nasdaq all up more than 2% in pre-market trading. Naeem Aslam, chief market analyst at AvaTrade said: "The fresh optimism is fueled on the back of two factors: firstly, Donald Trump's announcement of partial opening of the economy and finally, Gilead Science has found more effective results in treating the coronavirus patients." Gilead's stock price rose roughly 19% in pre-market trading on the Nasdaq exchange. Investors shrug off poor Chinese data Data on Friday showed the Chinese economy shrank by almost 7% compared to last year. Growth was down 9.8% compared to the previous quarter. This puts the country at its worst economic performance in more than 40 years, meaning that the coronavirus outbreak has proved more costly to the country than both the SARS epidemic and the global financial crisis. But most markets shrugged off the data, buoyed on the effectiveness of Remdesivir. Neil Wilson, chief market analyst at Markets.com, said: "[Remdesivir] is not actually a vaccine, but anything that can help end lockdowns and get economies moving quickly is a huge positive." The yield on US Treasuries also fell, a sign of an improving economic picture. Bond prices and yields are inversely correlated. Lower bond prices signal less demand for them, and fewer people buying them means a greater willingness to flock to riskier assets. But Aslam warned that "equities markets have got ahead of themselves and have lost connection with reality," meaning a major price crash could be ahead. "I agree that most of the countries are about to see their coronavirus peak, but massive damage has been done to the economy during this time period but until and unless we see a bottom forming in the economic numbers, any rise in the equity markets is prone to some serious risk," he said. US President Donald Trump is pushing to restart the US economy as early as next month. But steep losses were seen in the US oil market. US crude oil fell sharply to reach another 18-month low around $18 with Aslam warning that this could drive many energy companies to the brink of collapse. "Some of the energy companies such as Chesapeake energy are already sitting on the verge of bankruptcy. My question is have the equity markets factored that in or have these markets been given a get-out-of-jail car," he said. Here is the market round-up as of 6.15 a.m. ET. US futures sharply rose. Futures underlying the Dow Jones Industrial Average rose 2.91%, the S&P 500 rose 2.76%, and Nasdaq rose 2.07% Asian indexes followed rose despite the data with Hong Kong's Hang Seng up 1.35%, Japan's Nikkei up 2.09%, and China's Shanghai Composite up 0.31%, European equities followed suit, with Germany's DAX up 3.72%, Britain's FTSE 100 up 3.24%, and the Euro Stoxx 50 up 3.62%. Oil prices tumbled with West Texas Intermediate down 7.7% at about $18.46 a barrel, and Brent crude down by 0.6% at $28.33. The benchmark 10-year Treasury yield rose above 5.83%. Gold fell 1.98% to $1683.75. Join the conversation about this story » NOW WATCH: Pathologists debunk 13 coronavirus myths
US stocks climbed on Wednesday as the Senate moved toward a final vote on a $2...US stocks climbed on Wednesday as the Senate moved toward a final vote on a $2 trillion relief package to aid economic fallout from coronavirius. The White House and the Senate reached an agreement overnight on the package, but a final vote is still pending. The bill includes payments for Americans, unemployment-benefit expansions, and loans for businesses hit by the economic slump. The gains followed the Dow Jones industrial average's best day since 1933. The benchmark index soared 11% in Tuesday's session as investors bet on a near-term deal for fresh fiscal stimulus. Watch major indexes update live here. The S&P 500 and Dow Jones industrial averge climbed on Wednesday as the Senate moved toward a final vote on a $2 trillion relief package to aid economic fallout from coronavirius. The White House and the Senate reached an agreement overnight on the bill. The tech-heavy Nasdaq Composite index slid slightly on the day. The package would expand unemployment benefits, push funds to hospitals and healthcare workers, issue emergency loans to both small and large businesses, and send checks to Americans; the bill calls for $1,200 payments for adults and $500 for each child. About $50 billion is allocated for loans for airlines, an industry hit particularly hard by the pandemic and the sudden halt to travel. Here's where the major US indexes stood at the market close on Wednesday: S&P 500: 2,475.56, up 1.2% Dow Jones industrial average: 21,200.55, up 2.4% (496 points) Nasdaq composite: 7,384.29, down 0.5% Read more: The 'trade of the century': 2 hedge-fund managers break down a simple investing strategy built to profit from the wreckage caused by the coronavirus outbreak The gains followed the Dow's best day in 87 years. The benchmark index soared 11% through Tuesday's session as a fiscal deal neared. The Federal Reserve had already issued monetary support through rate cuts, asset purchases, and new credit facilities. The Senate stimulus package would more directly put money in the hands of ailing businesses and consumers as the outbreak risks near-term economic recession. "Despite the mammoth amount of stimulus slated to enter the economy, strict containment measures are the best bet for stabilizing markets," Jeffrey Bergstrand, finance professor at the University of Notre Dame's Mendoza College of Business, told Markets Insider in an email. Now read: A JPMorgan heavyweight who advises a $1.9 trillion business breaks down 3 investing strategies set to thrive right now — even as he forecasts 'the virus is going to win' President Trump's Tuesday call to reopen the economy by Easter added fresh worry around cases spiking across the US. The lack of unified shelter-in-place mandates "will cause uncertainty to rise again" and risks "stifling a possible recovery," Bergstrand said. Oil traded higher on Wednesday morning after turning lower in the previous session. The commodity has been under pressure in recent weeks as Saudi Arabia and Russia flood the market with fresh inventory and drive prices near two-decade lows. More markets coverage from Markets Insider and Business Insider: Trump and Pence reportedly talked with a handful of Wall Street giants to get their view on how coronavirus is reshaping markets and the economy The Fed's cannonball into bond markets drove $1 billion into the world's biggest credit ETF in a single day Morgan Stanley studied decades of recession history to compile a playbook for what to buy during and after a stock bear market — and when to do itJoin the conversation about this story » NOW WATCH: The rise and fall of Pan Am
President Donald Trump announced on Wednesday that the US would temporarily close its border with Canada...President Donald Trump announced on Wednesday that the US would temporarily close its border with Canada to all nonessential traffic. "We will be, by mutual consent, temporarily closing our Northern Border with Canada to non-essential traffic," Trump tweeted. "Trade will not be affected. Details to follow!" Trump tweeted. Canadian Prime Minister Justin Trudeau announced on Monday afternoon that Canada would close its borders to anyone who is not a citizen, permanent resident, or US citizen as the coronavirus pandemic worsens. Visit Business Insider's homepage for more stories. This story is breaking. Check back for updates. President Donald Trump announced on Wednesday that the US will temporarily shut down its border with Canada to all "non-essential traffic." "We will be, by mutual consent, temporarily closing our Northern Border with Canada to non-essential traffic. Trade will not be affected. Details to follow!" Trump tweeted. Trump's announcement comes as the novel coronavirus, which causes a disease known as COVID-19, continues sweeping across the globe. The World Health Organization classified the coronavirus as a pandemic on March 11. To date, more than 204,000 people have been infected and 8,244 have died. In the US, at least 5,881 people across every state, plus Washington, DC, and three territories, have tested positive for coronavirus, according to a New York Times database, and at least 107 patients with the virus have died. Canadian Prime Minister Justin Trudeau announced on Monday afternoon that Canada would close its borders to anyone who is not a citizen, permanent resident, or US citizen as the coronavirus pandemic worsens. As of Wednesday evening, Canada has 569 confirmed cases and 26 probable cases. Federal and state officials in the US have significantly tightened restrictions on social movement in recent days as the number of confirmed coronavirus infections skyrockets. Trump on Monday recommended that Americans avoid gatherings of more than 10 people. The White House also recommended that Americans homeschool their children, avoid nonessential travel, and avoid bars and restaurants. The guidelines aren't mandatory, but they came after many cities and states, including New York, closed businesses such as theaters, bars, and gyms, required restaurants to provide only delivery and takeout, and prohibited large gatherings. Various states have also closed public schools. The global economy is also tanking amid investor panic over the virus. US stock futures tumbled into "limit down" territory and oil plunged to a 17-year low on Wednesday as investors seemed to brush off sweeping government proposals and actions meant to ease the novel coronavirus' effects on the world economy. Futures contracts for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq hit their exchange-enforced limits on losses, according to Bloomberg. Oil prices — already hit hard by a price war and concerns that the coronavirus would erode demand — slumped to 2003 levels. Theron Mohamed contributed to this report.Join the conversation about this story » NOW WATCH: Extremists turned a frog meme into a hate symbol, but Hong Kong protesters revived it as an emblem of hope