Stocks adding to biggest one day gain on stimulus hopes

U.S. equity futures are moving decisively higher following the biggest one day gain.

The major futures indexes are indicating a gain of 0.7 percent ahead of the Tuesday trading session.

Traders were awaiting talks between central bankers and other financial leaders of the Group of Seven industrial nations on how to tackle the slowdown brought on by the coronavirus outbreak that began in China and has spread to dozens of countries, killing about 3,100 people and sickening more than 90,000.

U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell will lead the call Tuesday. The group includes Japan, Germany, Britain and France, among others. The G-7 often issues statements pledging cooperation amid global economic turbulence.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The International Monetary Fund and World Bank announced simultaneously Monday that they are ready to help countries affected by the coronavirus through their emergency lending programs and other tools.

And Christine Lagarde, the head of the European Central Bank, said Monday that Europe's top monetary authority is ready to take "appropriate and targeted measures" if necessary to support the economy against the headwinds from the new coronavirus.

MNUCHIN, POWELL TO LEAD G7 CORONAVIRUS CALL TO DISCUSS RESPONSE

The Reserve Bank of Australia cut its key interest rate to a record-low 0.5 percent.

In Asia, Japan's Nikkei lost 1.2 percent,  Hong Kong's Hang Seng inched up 0.2 percent and China's Shanghai Composite advanced 0.7 percent.

In Europe, London's FTSE  added 2 percent, Germany DAX rose 2.2 percent and France's CAC was up 1.9 percent.

The Dow Jones Industrial Average soared nearly 1,300 points, or 5.1 percent, to 26,703.32 on Monday, its biggest-ever point gain and the biggest percentage increase since March 2009.

Technology companies led the broad gains in New York, where the S&P 500 index jumped 4.6 percent to 3,090.23 in its best day since December 2018. Apple climbed 9.3 percent and Gilead Sciences rose 8.7 percent. The biotechnology company has been testing one of its drugs as a potential treatment for the coronavirus.

The Nasdaq added 4.5 percent to 8,952.16.

The virus epidemic that began in central China has been shutting down industrial centers, emptying shops and severely crimping travel all over the world. More companies are warning investors that their finances will take a hit because of disruptions to supply chains and sales.

TRUMP SAYS CORONAVIRUS TREATMENT COULD BE READY BEFORE TRUE VACCINE

Amid the worsening outlook, 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.

The OECD cut its world growth forecast and said that even if there are only limited outbreaks outside China, the global economy will grow just 2.4 percent this year, the weakest since the crisis. That forecast matches several private estimates.

If other countries are hit with outbreaks similar to China's, growth could fall as low as 1.5 percent, the OECD said.

CLICK HERE TO READ MORE ON FOX BUSINESS

Benchmark U.S. crude rose $1.55 to $48.29 a barrel. It jumped $1.99, or 4.4 percent, to $46.75 per barrel on Monday. Brent crude, the international standard, gained $1.44 to $53.39.

The Associated Press contributed to this article.