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Stocks Jump After a Wild Day: Live Market Updates Stocks Jump After a Wild Day: Live Market Updates
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Shares on Wall Street rose on Wednesday, bouncing back from a steep drop the day before that had been fueled by concerns over the worldwide coronavirus outbreak.Shares on Wall Street rose on Wednesday, bouncing back from a steep drop the day before that had been fueled by concerns over the worldwide coronavirus outbreak.
From Tokyo to New York, financial markets have been on a roller coaster for the past two weeks as investor grapple with the potential damage the coronavirus could inflict on the global economy as fractured supply chains, travel bans imposed by companies and governments, and the disruption of daily life in general, take their toll. From Tokyo to New York, financial markets have been on a roller coaster for the past two weeks as investors grapple with the potential damage that the coronavirus could inflict on the global economy, as fractured supply chains, travel bans imposed by companies and governments, and the disruption of daily life take their toll.
After falling nearly 3 percent on Tuesday, the S&P 500 was up more than 1 percent Wednesday morning. Shares in Europe were also higher, while markets in Asia had been mixed as traders there looked for more signals on how global leaders would respond.After falling nearly 3 percent on Tuesday, the S&P 500 was up more than 1 percent Wednesday morning. Shares in Europe were also higher, while markets in Asia had been mixed as traders there looked for more signals on how global leaders would respond.
In the United States, the rosier outlook might partly reflect Wall Street’s appraisal of the Super Tuesday primary election results, which revived Joseph R. Biden Jr.’s campaign against Senator Bernie Sanders, whose plans to take on banks and tax stock and bond trades have worried many in the financial community.In the United States, the rosier outlook might partly reflect Wall Street’s appraisal of the Super Tuesday primary election results, which revived Joseph R. Biden Jr.’s campaign against Senator Bernie Sanders, whose plans to take on banks and tax stock and bond trades have worried many in the financial community.
The most obvious indication of this was a spike in shares of health care companies. Mr. Sanders aims to eliminate most private health insurance as part of a single-payer health care plan. Shares of the insurer UnitedHealth Group were up more than 12 percent.The most obvious indication of this was a spike in shares of health care companies. Mr. Sanders aims to eliminate most private health insurance as part of a single-payer health care plan. Shares of the insurer UnitedHealth Group were up more than 12 percent.
There is little clarity about how long it will take governments and health officials to contain the virus, leading to a gloomy prognosis for global economic growth.There is little clarity about how long it will take governments and health officials to contain the virus, leading to a gloomy prognosis for global economic growth.
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On Tuesday, the Federal Reserve validated those concerns by announcing an emergency cut in interest rates, only a few hours after leaders of the world’s largest economy said they would refrain from concrete action.On Tuesday, the Federal Reserve validated those concerns by announcing an emergency cut in interest rates, only a few hours after leaders of the world’s largest economy said they would refrain from concrete action.
On Wednesday in Europe, the FTSE 100 index in Britain was 1.4 percent higher. The DAX in Germany gained 1.1 percent, while the CAC 40 index in France was up 1.2 percent.On Wednesday in Europe, the FTSE 100 index in Britain was 1.4 percent higher. The DAX in Germany gained 1.1 percent, while the CAC 40 index in France was up 1.2 percent.
In Tokyo, the Nikkei 225 index ended 0.1 percent higher, and Hong Kong’s Hang Seng Index finished 0.2 percent lower. In China, the Shanghai Composite Index rose 0.6 percent.In Tokyo, the Nikkei 225 index ended 0.1 percent higher, and Hong Kong’s Hang Seng Index finished 0.2 percent lower. In China, the Shanghai Composite Index rose 0.6 percent.
The head of the International Monetary Fund warned on Wednesday that the economic fallout of the coronavirus would be more “dire” than previously thought and said that uncertainty would remain until policymakers could more clearly assess the duration of the outbreak.The head of the International Monetary Fund warned on Wednesday that the economic fallout of the coronavirus would be more “dire” than previously thought and said that uncertainty would remain until policymakers could more clearly assess the duration of the outbreak.
The I.M.F. said in late February that it was reducing its 2020 global growth forecast by 0.1 percentage points to 3.2 percent, with a more dramatic slowdown in China weighing on the global economy.The I.M.F. said in late February that it was reducing its 2020 global growth forecast by 0.1 percentage points to 3.2 percent, with a more dramatic slowdown in China weighing on the global economy.
Get an informed guide to the global outbreak with our daily coronavirus
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“We have unfortunately seen a shift towards a more adverse scenario for the global economy,” Kristalina Georgieva, the managing director of the I.M.F., said at a briefing on Wednesday.“We have unfortunately seen a shift towards a more adverse scenario for the global economy,” Kristalina Georgieva, the managing director of the I.M.F., said at a briefing on Wednesday.
Treasury Secretary Steven Mnuchin said at a congressional hearing on Wednesday that it was too early to predict the impact of the virus on the economy around the world or in the United States. He said he had not seen major disruptions to global supply chains but that he expected some industries, such as travel, to face headwinds.Treasury Secretary Steven Mnuchin said at a congressional hearing on Wednesday that it was too early to predict the impact of the virus on the economy around the world or in the United States. He said he had not seen major disruptions to global supply chains but that he expected some industries, such as travel, to face headwinds.
Mr. Mnuchin said that he believed it was safe for most Americans to travel.Mr. Mnuchin said that he believed it was safe for most Americans to travel.
“I’d be very comfortable getting on a commercial plane today if I were personally traveling,” he told reporters before the hearing.“I’d be very comfortable getting on a commercial plane today if I were personally traveling,” he told reporters before the hearing.
The Bank of Canada cut rates on Wednesday by 50 basis points, to 1.25 percent, following the Federal Reserve’s move on Tuesday. As conferences around the world are canceled over virus concerns, including annual developer summits hosted by Facebook and Google, the popular South by Southwest festival will continue as planned.
Hong Kong’s monetary authority also cut rates on Wednesday. While it stopped short of lowering borrowing costs, South Korea’s central bank said it would keep the Fed’s emergency move in mind in setting its own policy. And central bankers in the United Arab Emirates, Qatar and Bahrain lowered rates by half a point. Organizers of the conference, held in Austin, Tex., said their plans have not changed, even as companies like TikTok and Twitter pulled out of their scheduled appearances. By Wednesday, more than 42,000 people had signed a petition to call off the gathering, which is scheduled for March 13-22.
Global commerce is heavily conducted in dollars, so the Fed’s move matters enormously to the rest of the world. When it lowers interest rates, it gives its counterparts in other countries room to cut their own borrowing costs without triggering capital outflows — in which investors park their money elsewhere in search of higher interest rates. Health officials have said that at least one person in Travis County, where the city is located, is being tested for coronavirus. But Dr. Mark Escott, the interim health authority for Austin Public Health, said there was no evidence right now that closing the festival would make the community safer.
As the coronavirus outbreak has spread to Europe and the United States, companies that rely on world travelers are struggling to predict exactly how they will ultimately be affected. He said government officials were concerned that “canceling large events that impact the economy, that may lead to job loss, has some downstream effects that may be hard to quantify.”
Most restrictions by American companies are on cross-border travel, but Ford Motor Company told its employees on Tuesday to stop all domestic air travel in the United States, and to use videoconferences as much as possible for critical meetings. Conference organizers have promised to screen workers before the event and make more hand-washing and sanitizing stations available, Dr. Escott said. They have also discussed limiting the number of people allowed into venues, he added.
Rare exceptions will be made for travel that is critical to Ford operations, requires employees to be on site and does not put anyone at risk, the company said. Another tech conference planning to go ahead is introducing strict rules. SaaStr, a business software conference scheduled for next week in San Jose, Calif., said it will ban residents of the most affected countries — China, South Korea, Italy and Iran — as well as anyone who has visited those places in the past 60 days.
The company had previously restricted travel to and from China, where it has two joint ventures. All attendees will need to show a U.S. driver’s license or a passport to enter. Citizens of China, South Korea, Italy and Iran will also be subject to additional screening, organizers said.
General Motors has stopped all employee travel to China, Japan, South Korea and Italy, and restricted international travel to other locations only for essential matters. Exceptions for international travel require approval of a senior executive, a spokesman said. Organizers plan to check all attendees’ temperatures via “passive scanning.” They also banned handshakes and mandated that attendees wash their hands before each session. “This may create some lines,” the organizers said. “Our apologies.”
Analysts say most companies in the lodging, gambling or leisure industries know they will take hit in the short term, but have little idea of what will happen in the summer or beyond.
Larry Birnbaum, who owns the Lightbulb Store in Hackensack, N.J., which manufactures and distributes LED products, said 95 percent of his stock comes from China, and nothing has arrived in the last month.Larry Birnbaum, who owns the Lightbulb Store in Hackensack, N.J., which manufactures and distributes LED products, said 95 percent of his stock comes from China, and nothing has arrived in the last month.
On average, Mr. Birnbaum said, he orders $100,000 in LED light bulbs from China every month, the equivalent of roughly 1,000 bulbs. When he paid the balance on his last order about a month ago, the factory called and said the Chinese government said that it wouldn’t be able to ship the bulbs and that the soonest it could was maybe the end of April or beginning of May. On average, Mr. Birnbaum said, he orders $100,000 in LED light bulbs from China every month, the equivalent of roughly 1,000 bulbs. When he paid the balance on his last order about a month ago, the factory called him and said the Chinese government said that it wouldn’t be able to ship the bulbs and that the soonest it could was maybe the end of April or beginning of May.
“Maybe is a scary word,” Mr. Birnbaum said. “I’ve been in the lighting business for 47 years. I’ve never seen anything like this.”“Maybe is a scary word,” Mr. Birnbaum said. “I’ve been in the lighting business for 47 years. I’ve never seen anything like this.”
The Lightbulb Store is both a wholesale business that sells to electronic wholesalers and a retail business for walk-in customers. Retail customers have yet to be affected, but Mr. Birnbaum has found a few U.S. suppliers, but has had to pay 20 to 30 percent above the typical price that American suppliers were charging — an amount already more than 10 percent higher than what Chinese companies charged. As a result, Mr. Birnbaum said, he was raising his wholesale prices by 10 to 15 percent. Ford Motor Company told its employees on Tuesday to stop all domestic air travel in the United States, and to use videoconferences as much as possible for critical meetings. Rare exceptions will be made for travel that is critical to Ford operations, requires employees to be on site and does not put anyone at risk, the company said.
The Bank of Canada cut rates on Wednesday by 50 basis points, to 1.25 percent, following the Fed’s move on Tuesday. So did Hong Kong’s monetary authority also cut rates on Wednesday and central banks in the United Arab Emirates, Qatar and Bahrain.
The London Book Fair, one of the publishing industry’s biggest international events of the year, was canceled on Wednesday because of concerns related to the coronavirus in Europe.The London Book Fair, one of the publishing industry’s biggest international events of the year, was canceled on Wednesday because of concerns related to the coronavirus in Europe.
General Electric said the coronavirus outbreak would probably cost it as much as $300 million in operating profit in the first quarter. It described the virus’s impact as an “evolving variable.”General Electric said the coronavirus outbreak would probably cost it as much as $300 million in operating profit in the first quarter. It described the virus’s impact as an “evolving variable.”
The Hannover Messe, a major industrial technology fair in Germany scheduled for April, was postponed because of coronavirus concerns; it will now take place in July. Google said on Tuesday that it was canceling its annual developers conference because of similar concerns. The Google I/O event was scheduled to take place May 12-14 in Mountain View, Calif.The Hannover Messe, a major industrial technology fair in Germany scheduled for April, was postponed because of coronavirus concerns; it will now take place in July. Google said on Tuesday that it was canceling its annual developers conference because of similar concerns. The Google I/O event was scheduled to take place May 12-14 in Mountain View, Calif.
Amazon learned that an employee in one of its office buildings in the South Lake Union neighborhood of Seattle had tested positive for the virus, the company said in an email to its staff late Tuesday.Amazon learned that an employee in one of its office buildings in the South Lake Union neighborhood of Seattle had tested positive for the virus, the company said in an email to its staff late Tuesday.
An employee of the accounting firm Deloitte in the City of London has tested positive for the coronavirus after a personal trip to Asia, the company said. “The member of staff is now in hospital and receiving good care,” a Deloitte representative said. Reporting was contributed by Geneva Abdul, Neal E. Boudette, Julie Creswell, Tiffany Hsu, Sophia June, Jeanna Smialek, Alan Rappeport, Karen Weise and Daisuke Wakabayashi.
Reporting was contributed by Geneva Abdul, Neal E. Boudette, Julie Creswell, Sophia June, Jeanna Smialek, Alan Rappeport, Karen Weise and Daisuke Wakabayashi.