The stock market roared back from an abysmal week last week in response to fears over how the spread of the coronavirus could impact business around the world.
“The Dow Jones Industrial Average closed 1,293.96 points higher, or 5.1%, at 26,703.32,” CNBC reported. “The move on a percentage basis was the Dow’s biggest since March 2009. It was also the largest-ever points gain for the 30-stock average.”
“The S&P 500 climbed 4.6% — its best one-day performance since Dec. 26, 2018 — to close at 3,090.23,” CNBC added. “The Nasdaq Composite also had its best day since 2018, surging 4.5% to 8,952.16.”
Politico reported that the stock market’s strong day happened because “investors are increasingly anticipating that the Federal Reserve and other major central banks around the world will lower interest rates or take other steps to shield the global economy from the effects of the outbreak.”
Sam Stovall, chief investment strategist at CFRA, told Politico, “Investors have convinced themselves that global central banks will likely be even more accomodative in order to short-circuit any psychological damage.”
"It's pretty stunning." 📈📈📈
Dow Jones +5.1% (biggest point gain ever)
S&P 500 +4.6%
Nasdaq +4.5% pic.twitter.com/YtbcII2GKQ— Steven Cheung (@CaliforniaPanda) March 2, 2020
The stock market bump came as Trump met with the heads of major pharmaceutical companies on Monday in an effort to push them to develop a vaccine for the coronavirus ahead of schedule and to ensure that supply chains would not be disrupted due to lowered manufacturing in China.
I am meeting with the major pharmaceutical companies today at the White House about progress on a vaccine and cure. Progress being made!
— Donald J. Trump (@realDonaldTrump) March 2, 2020
A report last year from he prestigious Johns Hopkins Bloomberg School of Public Health found that the United States was by far the most prepared nation to handle an epidemic.
The report stated regarding its evaluations of each nation:
Among its 140 questions, the [Global Health Security (GHS)] Index prioritizes not only countries’ capacities, but also the existence of functional, tested, proven capabilities for stopping outbreaks at the source. Several questions in the GHS Index are designed to determine not only whether a capacity exists, but also whether that capacity is regularly—for example, annually—tested and shown to be functional in exercises or real-world events.
The GHS Index also includes indicators of nations’ capacities and capabilities to reduce Global Catastrophic Biological Risks (GCBRs), which are biological risks of unprecedented scale that could cause severe damage to human civilization at a global level, potentially undermining civilization’s long-term potential. These are events that could wipe out gains in sustainable development and global health because of their potential to cause national and regional instability, global economic consequences, and widespread morbidity and mortality.
The 140 GHS Index questions are organized across seven categories:
- Overall
- Prevention: Prevention of the emergence or release of pathogens
- Detection and Reporting: Early detection and reporting for epidemics of potential international concern
- Rapid Response: Rapid response to and mitigation of the spread of an epidemic
- Health System: Sufficient and robust health system to treat the sick and protect health workers
- Compliance with International Norms: Commitments to improving national capacity, financing plans to address gaps, and adhering to global norms
- Risk Environment: Overall risk environment and country vulnerability to biological threats
The report ranked the United States:
- Overall: #1
- Prevention: #1
- Detection and Reporting: #1
- Rapid Response: #2
- Health System: #1
- Compliance with International Norms: #1
- Risk Environment: #19
This report has been updated to include additional information.