As President Donald Trump declared a national emergency on Friday, the Dow Jones responded by having the 9th largest one day gain in history. The Dow gained 1935 points and closed at 23,185.62, up 9.36 percent. The response of the stock market to the President’s press conference seemed to represent a collective sigh of relief that the government was taking concrete steps, after media outlets stoked fears across the nation this week.
Trump’s press conference came after his national address on Thursday night in which he discussed efforts to curb the spread of the coronavirus pandemic, after more than 1,700 cases were confirmed in the United States.
His action will provide up to $50 billion in disaster relief funds to state and local governments in response to the outbreak of COVID-19, the disease the new coronavirus causes.
“We will overcome the threat of the virus,” Trump said.
CORONAVIRUS SPECIAL COVERAGE
Trump also waived interest on all student loans held by federal government agencies and ordered the Energy Department to purchase large quantities of crude oil for storage. He also called on states to set up emergency centers, hospitals to activate emergency preparedness plans, and provided new powers to the Department of Health and Human Services.
The Federal Emergency Management Agency (FEMA) will use the billions of dollars in funding to mobilize health centers, patient transportation, and other needs in the event that hospitals and healthcare providers are overwhelmed with patients amid a spike in coronavirus cases. The virus emerged late last year in Wuhan, China, after authorities there failed to curb its spread, and has now reached more than 100 countries.
Previously, Trump used the Stafford Act for disaster declarations involving California wildfires and floods in the Midwest.
He told reporters on Thursday that the United States has “very strong emergency powers under the Stafford Act” and he has “it memorized, practically, as to the powers in that act. And if I need to do something, I’ll do it. I have the right to do a lot of things that people don’t even know about.”
A growing number of elected officials have pushed Trump to make an emergency declaration, which would mark a symbolic turning point in the White House’s response. Meanwhile, doctors and nursing groups like the American Hospital Association and American Medical Association have called on the Trump administration to cover the costs of caring for the millions of people without insurance.
Dozens of U.S. states and cities have already declared public health emergencies in the wake of new confirmed COVID-19 patients. Some states have closed all schools for weeks and others have banned large public gatherings, which effectively shutters sports contests, concerts, worship services, and other events.
House Speaker Nancy Pelosi (D-Calif.) said in a Friday news conference that the White House and Congress should put “families first to stimulate the economy.
“We can only defeat this outbreak if we have an accurate determination of its scale and scope, so that we can pursue the precise science-based response that is necessary,” Pelosi said, adding that the House is intent on passing a measure Friday that focuses on making testing free for everyone, including those without insurance, and other safety nets.
In the United States, there are at least 1,700 known cases, according to Johns Hopkins University. At least 40 deaths have been reported so far.
Trump talked with French President Emmanuel Macron on Friday about the pandemic and agreed to have a video conference with world leaders on Monday on coordinating research efforts to develop a vaccine and respond to an economic downturn, according to the French president in a Twitter post.
The stock market, in recent days, has been hammered by the spread of the virus, supply chain slowdowns, and closed events and businesses. The market suffered its worst day since 1987 on Thursday, while on Friday, it began to climb again.
It’s not common for administrations to make emergency declarations for disease outbreaks. President Bill Clinton in 2000 declared emergencies in New York and New Jersey over the spread of the West Nile Virus.
On Wednesday night, Trump attempted to halt fears by giving a speech from the Oval Office, saying he would bar many foreign travelers from mainland Europe over the next 30 days. He also proposed a series of economic relief actions to help workers and companies amid the pandemic.