US STOCKS-Wall Street set for rebound on stimulus hopes

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* Energy stocks, banks set to lead rebound
* Trump's news conference due on Tuesday
* Futures up: Dow 2.99%, S&P 2.97%, Nasdaq 3.14%

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By Sanjana Shivdas and Medha Singh
March 10 (Reuters) - Wall Street was set for strong opening
gains on Tuesday, with the Dow Jones on track to recover almost
half its losses from a day earlier on hopes of coordinated
policy easing to avert a global recession.
The three main U.S. stock indexes plunged more than 7% on
Monday, the 11th anniversary of the market's longest bull run,
as oil prices plummeted following pledges by top producers Saudi
Arabia and Russia to increase output in an over-supplied market.
The selloff was so sharp it triggered trading halts put in
place in the wake of 1987's "Black Monday" crash, with the
blue-chip Dow Jones shedding as much as 2,000 points and the
indexes slipping toward a bear market.
Sentiment recovered on Tuesday on signs of further monetary
easing to shore up the economy. Traders now expect the Federal
Reserve to cut interest rates for a second time this month,
while Japan unveiled a $4 billion package to combat the
coronavirus outbreak. "Investors are trying to look for any signs that there is
light at the end of the tunnel," said Adam Sarhan, chief
executive officer of 50 Park Investments in New York.
"If they get any sign that this coronavirus is not as
devastating economically, then this market can rip higher."
At 8:51 a.m. ET, Dow e-minis 1YMcv1 were up 713 points, or
2.99%. S&P 500 e-minis EScv1 were up 81.5 points, or 2.97% and
Nasdaq 100 e-minis NQcv1 were up 249.5 points, or 3.14%.
S&P futures briefly hit a 5% upper trading limit in early
deals.
If the S&P 500 .SPX rose 5%, it would be the first time
since the current bull market began in 2009.
President Donald Trump gives a news conference on Tuesday, a
day after he promised "major" steps to combat the virus outbreak
and said he would discuss a payroll tax cut with congressional
Republicans. The CBOE Volatility index .VIX , a gauge of investor
anxiety, slipped about six points to 48.37, after closing at its
highest levels since the financial crisis.
Oil also recouped some losses from its biggest one-day
decline since the Gulf War in 1991, supported by expectations
for a settlement to the price war and potential U.S. output
cuts. O/R
Exxon Mobil Corp XOM.N and Chevron Corp CVX.N climbed
more than 6% in premarket trading, while Occidental Petroleum
Corp OXY.N , Apache Corp APA.N and Marathon Oil Corp MRO.N
jumped between 20% and 32%.
American Airlines AAL.O rose 4.5%, echoing broader market
sentiment even as the carrier suspended its full-year results
forecast on the virus impact on demand, but said a fall in fuel
prices was expected to drive about $3 billion in 2020 cost
savings. Shares of U.S. banks including Bank of America Corp BAC.N ,
Citigroup Inc C.N , JPMorgan Chase & Co JPM.N , Goldman Sachs
GS.N , Wells Fargo & Co WFC.N and Morgan Stanley MS.N were
up between 4.2% and 5.8%.
The S&P banks index .SPXBK fell about 14.2% on Monday, in
its worst day since April 2009, as the yield on the U.S. 10-year
Treasury US10YT=RR slid to a record low.