Stocks Surge on Bets Central Banks to Take Action: Markets Wrap

Policy makers say they’re ready to move as virus spreads
OECD cuts global growth outlook as coronavirus outbreak widens

There’s no reason for the Federal Reserve not to act on the economic risks caused by the coronavirus, says State Street’s Timothy Graf.Source: Bloomberg

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By Randall Jensen and Vildana Hajric

March 1, 2020 at 8:06 PM UTC

Updated on

March 2, 2020 at 9:02 PM UTC

This article is for subscribers only.

U.S. stocks surged the most in fourteen months as investors gained confidence that stewards of the world’s largest economies would act in concert to offset any impact from the spreading coronavirus.

The S&P 500 rallied 4.6% after news that Group of Seven finance ministers and central bankers will hold a teleconference Tuesday to discuss how to respond to the outbreak. Tech shares led the rebound after seven straight days of declines for the benchmark index, with monetary policy makers from Japan to England joining the Federal Reserve in promising to take action to support their economies if needed.