(Reuters) – Wall Street was set for strong opening gains on Tuesday, with the Dow Jones on track to recover almost half its losses from a day earlier on hopes of coordinated policy easing to avert a global recession.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 9, 2020. REUTERS/Bryan R Smith
The three main U.S. stock indexes plunged more than 7% on Monday, the 11th anniversary of the market’s longest bull run, as oil prices plummeted following pledges by top producers Saudi Arabia and Russia to increase output in an over-supplied market.
The selloff was so sharp it triggered trading halts put in place in the wake of 1987’s “Black Monday” crash, with the blue-chip Dow Jones shedding as much as 2,000 points and the indexes slipping toward a bear market.
Sentiment recovered on Tuesday on signs of further monetary easing to shore up the economy. Traders now expect the Federal Reserve to cut interest rates for a second time this month, while Japan unveiled a $4 billion package to combat the coronavirus outbreak.
“Investors are trying to look for any signs that there is light at the end of the tunnel,” said Adam Sarhan, chief executive officer of 50 Park Investments in