Stock futures jumped by more than 500 points in overnight trading on Monday after the worst day since the financial crisis. Dubbed as “Black Monday”, indexes fell by more than 7% as the coronavirus and Saudi Arabia oil spat with Russia added to the flames.
President Donald Trump proposed new stimulus on Monday night in hopes to ease the fire. As part of his stimulus, he is looking at a payroll tax cut as well as help for hourly wage earners.
“We are going to be asking tomorrow, we’re seeing the Senate. We’re going to be meeting with House Republicans, Mitch McConnell, everybody discussing a possible payroll tax cut or relief, substantial relief,” Trump said.
“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,” he added.
The Whitehouse has also extended an invitation to Wall Street executives this week in hopes of crafting a plan to combat coronavirus pandemic. The oil plunge is also adding uncertainty to the market in which Donald Trump called it, “good for the consumer” as gas prices are falling.
Tuesday is shaping up to be a green day but remember that overnight action in the Dow futures does not mean that it would reflect actual trading the next day. However, with the Dow falling over 2,013 points and WTI plunging more than 24% on Monday, Tuesday is shaping up to be positive.
