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Now that the bull market is over, an uncertain future awaits U.S. stocks and the nation’s economy. Radical moves during the Great Recession, first by President George W. Bush and then by President Barack Obama, eventually helped clear the way for an extraordinary stretch of growth. President Donald Trump has based his argument for a second term on the performance of the markets. Now he faces his own potential nightmare scenario. In a speech last night, Trump offered many misstatements about the Covid-19 pandemic and even his own proposals to address it, which include a payroll tax suspension, $50 billion in small business loans and a controversial ban on European travelers. On the first day of the new bear market, investors delivered their verdict: the S&P 500 had its worst day since 1987, and a day known as Black Monday.   

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The Fed may have been drawing on the lessons of the last financial crisis when it pledged Thursday to increase purchases of U.S. government securities. After a short pause, however, investors resumed their selloff.

Democrats in the House of Representatives proposed a package of emergency legislation that Trump quickly rejected because it includes what he called “goodies.” The bill allows for free coronavirus testing, enhanced unemployment benefits, paid leave and increased Medicaid funding.

Former Vice President Joe Biden, now the Democratic frontrunner, unveiled his plan to fight the spread of Covid-19. His debate Sunday with Senator Bernie Sanders was moved from Phoenix to a Washington studio.

Patients with the new coronavirus keep the pathogen in their respiratory tract for as long as 37 days, a new study found, suggesting they could remain infectious for weeks.

The leading U.S. infectious-disease official said the coronavirus testing system in America is “a failing.” In China, the government says the peak of the outbreak is “generally over.” Trump’s travel restriction drew a furious response from the European Union and triggered a further slump in airline stocks. The European Central Bank boosted asset purchases and called for “ambitious and coordinated” action by policymakers. Read the latest on the pandemic in the Bloomberg virus update.

Goldman Sachs says diminishing liquidity in the S&P 500 futures market is driving this week’s extreme price moves, which may have been disproportionately driven by individual trades.

Bloomberg Businessweek Special Report, The Lost Year: Overconfidence, delays, mistakes and false information from the Trump administration may have made the epidemic—and its fallout—much worse than it had to be. 

What you’ll need to know tomorrow

• Bloomberg Graphics: Mapping the spread of the coronavirus.
• Will Covid-19 go away come summer, just like the flu? 
• Biogen outbreak makes Boston a case study in spread of virus.
• The U.K. abandons its effort to contain the coronavirus.
• Mexico’s low infection count raises questions about testing.
• The extreme distress of airline stocks in three charts.
• This Warren Buffett bet was hit hard by the oil crash.

What you’ll want to read in Bloomberg Pursuits

The decision came down from Albany on Thursday: Broadway is going dark. New York Governor Andrew Cuomo also said he is banning gatherings of more than 500 people to address the spread of the new coronavirus across the city and state. New York City declared its own emergency, too.

To contact the editor responsible for this story: Joshua Petri at jpetri4@bloomberg.net

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