The Dow Jones Industrial Average increased by around 1900 points Friday after US President Donald Trump declared a US national emergency to help combat the COVID-19 outbreak.
The Dow increased by 9.36% to 1986.00 points while the S&P 500 rose by 9.28% or 230.31 points. The Nasdaq Composite increased by 672.43 points, which corresponds to a 9.34% increase.
“Volatility, I always remind people, means big moves in both directions,” said Randy Frederick, vice president of trading and derivatives at financial investment management firm Charles Schwab is quoted as saying. “After as big of a rout as we’ve seen in the last 30 years, it’s not at all surprising to see at least a little bit of a bounce.”
The jump comes one day after the Dow Jones Industrial Average, S&P 500 and the Nasdaq Composite Index closed down 10% each, in response to Trump’s European travel restrictions amid the coronavirus outbreak.
Trump on Friday declared the pandemic a national emergency, which will make $50 billion in funds available to US states and territories to fight the deadly disease outbreak.
Trump called on every US state to establish emergency operation centers and urged hospitals to activate their emergency preparedness plans. In addition, the national health declaration will give health officials maximum flexibility to help curb the spread of the pandemic.
“Our overriding goal is to stop the spread of the virus and to help all Americans who have been impacted by this,” Trump said. “Again, we don’t want everyone taking this test. It’s totally unnecessary. And this will pass through and we’re going to be even stronger for it.”
Trump also announced the travel restrictions would suspend entry of foreign nationals who’ve been in Europe in the last 14 days. In addition, US citizens returning from Europe could be subject to additional screening and quarantines. While the UK was initially excluded from the travel ban, Trump noted that it may be added to the list if COVID-19 cases in the UK continue to rise.
Powerful report from the War Room’s Owen Shroyer.
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