Stocks surge 7% on signs new virus deaths could be slowing

NEW YORK (AP) — A worldwide rally gained steam on Wall Street Monday, propelling major indexes up more than 7%, as traders cheered glimmers of hope that the deadliness of the coronavirus outbreak could be slowing in some of the hardest-hit areas. New York’s governor said the rate of increase of deaths could be approaching a plateau, but he cautioned it was far too early to say the worst had passed. European and Asian markets also rose. Bond yields rose as investors became somewhat less pessimistic about prospects for the economy. The price of oil fell after a meeting between big producers about cutbacks was postponed.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story is below:

Stocks around the world jumped Monday after some of the areas hardest hit by the coronavirus offered sparks of hope that the worst of the outbreak may be on the horizon.

Gains accelerated throughout the day, and U.S. stocks were up about 5.5% in afternoon trading. Markets in Europe and Asia also rose nearly as much. In another sign that investors are feeling more optimistic about the economy’s path, they sold bonds and the yield on the 10-year Treasury rose toward its first gain in four days.

New coronavirus infections and deaths are showing signs of slowing in Italy and Spain. The center of the U.S. outbreak, New York, also reported the number of daily deaths has been effectively flat for two days. That was enough to launch stocks higher, even though the U.S. is still bracing for a surge of upcoming deaths due to COVID-19 and New York Gov. Andrew Cuomo said restrictions should stay in place to slow its spread.

“We're running on raw optimism, maybe that's the best way to put it,” said Randy Frederick, vice president of trading and derivatives at Schwab Center for Financial Research.

Investors have been waiting anxiously for a...