The Dow Jones Industrial Average jumped more than 5% on Monday, while the S&P 500 and Nasdaq added more than 4%, recovering losses after a sharp sell-off last week caused by fears of a coronavirus.
The rally followed the worst week since 2008 on the US stock market, which on Thursday slid into a correction due to fears of a possible recession in connection with the epidemic.
Haruhiko Kuroda, head of the Bank of Japan, said on Monday that the central bank would take the necessary steps to stabilize markets shocked by the outbreak of coronavirus, reinforcing expectations of coordinated global monetary policy measures.
“We can dismiss the economic downturn, but if it begins to extend to the ability of companies to repay debt, it will create more serious problems. But it seems to me that central banks are teaming up to find a way to protect credit markets from economic uncertainty, ”said Jack Ablin, investment director for Cresset Wealth Advisors in Chicago.
The Dow Jones index jumped 5.09% to 26.703.32 points, the S&P 500 jumped 4.60% to 3.090.23, and the Nasdaq Composite jumped 4.49% to 8.952.17.
Apple stocks soared 9.3%, up since 2008.
Forty Seven cancer drug developer papers rose 62% after a larger rival, Gilead Sciences, offered him a $ 4.9 billion purchase. Gilead shares jumped 8.71%.