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US Stocks Set To Recover As Trump Proposes Payroll Tax Cut

The stocks in the United States seem to be heading for recovery when markets open Tuesday as futures contracts rebounded after Monday's wide sell-off.

Benzinga · 03/10/2020 11:39

The stocks in the United States seem to be heading for recovery when markets open Tuesday as futures contracts rebounded after Monday's wide sell-off.

What Happened

The futures traded higher at press time after President Donald Trump said he would ask the Congress to pass payroll tax relief and other measures to dilute the economic impact from the coronavirus (COVID-19) outbreak, the Associated Press reported.

Trump said that his administration would be "discussing a possible payroll tax cut or relief, substantial relief, very substantial relief, that's big, that's a big number."

The Trump administration would also discuss possible ways of reducing the financial impact of the coronavirus on hourly wage earners.

"We're also going to be talking about hourly wage earners getting help so that they can be in a position where they're not going to ever miss a paycheck," the president added, per the Associated Press.

Why It Matters

Trump's suggestions come after financial markets made record losses on Monday, one of the worst since the global financial crisis of 2008.

Businesses are taking precautions against the COVID-19 spread, shutting down affected offices and asking employees to work remotely, as 754 cases have been confirmed in the U.S., according to Johns Hopkins University data, including 26 deaths.

The oil crisis also affected the market sentiments as Saudi Arabia gave a significant discount to its oil customers in a price war with Russia.

US Futures

S&P 500 futures traded 3.48% higher at 2,843.25 at press time early Tuesday. Dow Jones Futures added 822 points at 24,699. Nasdaq 100 futures traded 3.48% higher at 2,843.25.

Oil stabilized, with West Texas Intermediate futures trading nearly 7% higher at $33.28. Brent futures were up 7.36% at $36.89.

Spot gold retreated by nearly 1% at $1,659.50.