Market Snapshot: After a brutal day, stock futures gain after Trump floats cuts to payroll taxes

U.S. stock market futures shook off early losses and shot higher late Monday, following Wall Street’s worst selloff since 2008.

A Tuesday rebound would not be unusual — Bespoke Investment Group strategists found that in the 10 previous times since 1952 that the S&P 500 fell 5% or more on a Monday, the index has gained the following day, by an average of 4.2%.

What are the major indexes doing?

Dow Jones Industrial Average futures

were last up around 600 points, or 2.7%, while S&P 500 futures

and Nasdaq-100 futures

were each up more than 2.5%.

Earlier, the Dow

closed down 2,013.76 points, or 7.8%, at 23,851.02, while the S&P 500

fell 225.81 points, or 7.6%, to end at 2,746.56, near its session low. The Nasdaq Composite Index

plunged 624.94 points, or 7.3%, to finish at 7,950.68. All three benchmarks suffered their biggest one-day percentage declines since 2008.

What’s driving the market?

Futures started rallying late Monday after President Donald Trump said in a White House news conference that he would seek payroll tax relief and other measures to help businesses amid the coronavirus outbreak. Trump said he would announce more details Tuesday, and discuss “a possible payroll tax cut or relief, substantial relief, very substantial relief, that’s big, that’s a big number,” the Associated Press reported. “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.”

Monday’s stock plunge was the result of growing fears of the economic toll that the rapidly spreading COVID-19 outbreak will take, as well as a selloff in energy-related companies amid a crude-oil price war kicked off over the weekend between Saudi Arabia and Russia.

What are analysts saying?

“We are on the verge of a credit crisis,” Stephen Innes, chief market strategist at AxiTrader, wrote in a note late Monday. “A fiscal response could be justified not because S&Ps are down, or oil is down, but because we are potentially on the cusp of a credit crisis driven by cash flow shortages and bankruptcies across a meaningful list of industries.”

What are other markets doing?

After plummeting 25% Monday, their worst day since the 1991 Gulf War, crude oil prices ticked up in electronic trading late Monday. West Texas Intermediate crude for April delivery

on the New York Mercantile Exchange rose 5.6% to $32.94 a barrel. May Brent crude

, the global benchmark, gained 6.7%, to $36.75.

Gold futures

slipped 0.5% at $1,668.20 an ounce late Monday.

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