Futures on US financial markets spike overnight, hit limit up

(NEW YORK) — Futures on U.S. financial markets spiked, briefly hitting their “limit-up” trading thresholds as the unprecedented coronavirus-induced volatility continues to roil Wall Street.

Futures on the Dow Jones Industrial Average were up by more than 800 points early Tuesday, or more than 4%. Futures on the S&P 500 were also up by more than 4%.

The premarket rally comes as U.S. Treasury Secretary Steven Mnuchin and Senate Minority Leader Chuck Schumer said they are “very close” to an agreement on a massive stimulus package to save the national economy from the detrimental impact of the coronavirus pandemic.

On Monday, equity markets tumbled on news that the stimulus package was being held up by Democratic lawmakers in its current form. The Dow closed down by more than 3%, and the S&P 500 and Nasdaq saw similar losses.

As the COVID-19 health crisis increasingly becomes a financial one, the Federal Reserve has pulled out all the stops to ameliorate the economy. Meanwhile, all three major U.S. indices have plunged into bear market territory.

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