With governments beginning to announce strong action, the sense of certainty craved by investors has increased for the time being. The Dow and TSX Surged.
After a hellish week, stock markets have surged.
The Dow Jones Industrial Average finished 1,985 points higher, up 9.4%, at 23,185.62.
It was the biggest one-day gain for the Dow Jones.
Meanwhile, the TSX also surged up a whopping 9.7%, the biggest gain since the volatile times of 2008.
Markets appear to be reacting well to the announcement by US President Donald Trump that he would declare a national emergency and free up billions in resources, and announcements by Prime Minister Justin Trudeau, Finance Minister Bill Morneau, and Bank of Canada Governor Stephen Poloz that Canada is massively ramping up lending capacity and providing direct support to businesses.
Even though the Coronavirus pandemic is expected to worsen before it gets better, markets love certainty, even if it’s the certainty of tough times ahead.
With Trump gathering respected CEO’s and business leaders to push for a unified response in America, and with Canada’s government promising immense levels of government stimulus, the markets are realizing that the government’s are taking things at least somewhat seriously.
VIDEO: Trump Coronavirus Press Conference
Photo – YouTube