U.S. stock futures were pointing to a strong rebound Wednesday on Wall Street as moderate Democrat Joe Biden scored major Super Tuesday wins in the race for his party's presidential nomination. The implied gain of over 500 points for the Dow Jones Industrial Average at the open would largely reverse Tuesday's 785 point decline. The Dow was all over the map, with an intraday gain of nearly 400 points and loss of almost 1,000 points after Tuesday morning's emergency 0.5% interest rate cut by the Federal Reserve failed to temper concerns of slower economic growth due to the coronavirus outbreak. The Dow closed in a correction, down over 12% since record highs on Feb. 12. A correction is defined as a decline of at least 10% from recent 52-week highs. ADP's private-sector jobs report showed better-than-expected payroll growth of 183,000 positions in February. On Friday, the government issues its February employment report.
Investors are still piling into bonds early Wednesday, but the 10-year Treasury yield went above 1%, a threshold it breached to the downside for the first time ever on Tuesday. Other global central banks, including the European Central Bank and the Bank of England, are expected to follow the Fed and announce stimulus measures in coming days. However, there's a debate in the market over whether monetary policy can really help boost economic growth if people worried about catching the coronavirus won't leave their homes to go out to eat or to travel.
The World Health Organization said the mortality rate for coronavirus is 3.4% globally, higher than previous estimates of about 2%. By comparison, the 2002-2003 SARS outbreak killed nearly 1 in 10 infected people. The common flu in the U.S. has a mortality rate of 0.1%. More than 93,000 coronavirus cases have been confirmed worldwide, including 3,198 deaths, though the vast majority of infections and deaths are still in China, where the virus originated in late December. Italy now has the most cases of coronavirus outside Asia, with over 2,500 cases and 79 deaths, South Korea has the most cases outside China, with 5,328 infections and 32.
Amazon confirmed that an employee in Seattle tested positive for the coronavirus. ″We're supporting the affected employee who is in quarantine," Amazon told CNBC. The office is in downtown Seattle on 9th Avenue, according to a search on Google Maps. It is not Amazon's headquarters office, which is located on 7th Avenue. Twenty-seven of the more than 100 cases in the U.S. are in Washington state. All nine U.S. deaths from the virus were in Washington state.
Biden won nine of the 14 Super Tuesday states holding primaries and caucuses, including delegate-rich Texas. However, Vermont Sen. Bernie Sanders, who led the delegate count heading into Tuesday's contests, was leading in California. With California's delegates yet to be allocated, Biden has 453 and Sanders has 373 total delegates, according to NBC News. No matter who emerges with the most delegates, Biden and Sanders are the clear front-runners. Billionaire former New York Mayor Mike Bloomberg, who joined the race late and banked his personal war chest on Super Tuesday races, won only in American Samoa. Massachusetts Sen. Elizabeth Warren also had a weak showing, losing her home state to Biden.