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Stocks on Wall Street rose on Monday as investors bid up shares of health care companies as they reported progress on products that could help with the coronavirus outbreak.

The S&P 500 climbed more than 3 percent, adding to a strong showing last week. The S&P 500 had risen 10 percent last week after a three day run that was its best since 1933, amid relief over Washington’s $2 trillion spending plan.

Gainers on Monday included Johnson & Johnson, which said it had identified a lead candidate for a vaccine for the virus and planned to ramp up both production and clinical testing. Also, Abbott Laboratories rose on reports that it had said a new test that could detect the virus in five minutes had been cleared for use by the Food and Drug Administration.

But there were lingering signs of caution in the financial markets. Most notably, oil prices tumbled to their lowest levels since 2002.

And in the stock market, Monday’s rally came on relatively light volume, said Matt Maley, chief market strategist at Miller Tabak, a trading and asset management firm. That suggests a lack of conviction among investors, he said.

“It’s a little bit of lack of confidence,” said Mr. Maley, “And you can’t blame them after what’s happened.”

And some industries continued to be battered by the long shadow of the virus. Cruise lines Royal Caribbean, Norwegian and Carnival were all down 10 percent, making them some of the worst performers in the S&P 500 on Monday.

The dizzying moves that characterized trading in financial markets for most of March seem to have ended as policymakers around the world moved to bolster their economies with spending and other means of support. But investors were weighing those efforts against the rising number of coronavirus cases, and redoubled efforts to contain them.

Macy’s, which also owns Bloomingdale’s and Bluemercury, said on Monday that it had lost “the majority” of its sales because of store closures, which started March 18 and would persist until the retailer had a “clear line of sight on when it is safe to reopen.”

The company said that as a result, it will furlough the majority of its employees this week and maintain the “absolute minimum work force needed to maintain basic operations,” according to a statement. There will be fewer furloughs among employees supporting the digital business at call centers and distribution centers. Macy’s had 125,000 part-time and full-time employees at the end of last year.

The move shows the strain that the pandemic is placing on retailers selling goods that are considered nonessential. Many department stores and mall chains had already been weakened in recent years by the rise of e-commerce and a drop in foot traffic at malls. A complete closure of stores and a shift in consumer spending is dealing a new blow to such companies and their many employees.

Macy’s also said that it had already stopped capital spending and paying a dividend. It has also drawn down its line of credit and canceled some orders.

Retail workers have been affected across the board. L Brands, which owns Victoria’s Secret and Bath & Body Works, said it would furlough most store staff and “those who are not currently working to support the online businesses or who cannot work from home” starting April 5. Nordstrom said last week that it would furlough “a portion of corporate employees” on April 5 for six weeks. Rent the Runway laid off its retail employees through a Zoom call on Friday, according to The Verge, while Everlane laid off and furloughed nearly 300 of its workers.

Gannett, the largest newspaper publisher in the United States, said on Monday that it would impose pay cuts and furloughs on its staff, making it the latest news company to acknowledge that reader interest prompted by the coronavirus pandemic has not made up for a sharp downturn in advertising revenue.

Employees learned of the austerity plan through a memo sent by Paul Bascobert, the chief executive of Gannett’s operating company.

In the memo, which was obtained by The New York Times, Mr. Bascobert said that advertising had fallen off, despite an increase in web traffic and subscriptions. “Overall, though,” he added, “we expect our revenue to decline considerably during this period.”

Homeowners will have to choose between rent or electricity. Businesses could start laying off workers.

“These are cascades that, once they get going, are very hard to stop,” according to Claudia Sahm, head of macroeconomic policy for the Washington Center for Equitable Growth. “You’re already seeing it.”

Top Democrats are urging the Treasury Department and Federal Reserve to use nearly $500 billion from the $2 trillion economic rescue package that became law last week to bail out strapped states and cities, instead of granting loans to large corporations.

The law appropriates $454 billion from Treasury to backstop loans from the Fed to eligible businesses, municipalities or states. Officials have so far focused their emergency lending programs on businesses. Senator Elizabeth Warren of Massachusetts wrote to Treasury on Friday, calling the needs of local and state governments “a matter of life and death.”

The Fed has come under increasing pressure to help state and municipal finance, potentially by investing directly in local debt, though it has thus far declined to. Some of its programs help local bond markets, but do so indirectly.

The strike appeared to be having some effect on Monday. Ryan Hartson, an Instacart worker in Chicago, shared a screenshot from his Instacart app showing that many time slots were available for shoppers to pick up groceries, suggesting that the supply of workers was smaller than usual.

“Our team has had an unwavering commitment to prioritize the health and safety of the entire Instacart community,” Nilam Ganenthiran, president of Instacart, said in a statement. “We’ve been evaluating the Covid-19 crisis minute-by-minute to provide real-time support for Instacart shoppers and customers.”

Reporting was contributed by Matt Phillips, Stanley Reed, Kenneth P. Vogel, Jim Tankersley, Jeanna Smialek, Alexandra Stevenson, Matthew Goldstein, Sapna Maheshwari, Neal E. Boudette, Andrew Jacobs, Mary Williams Walsh, Conor Dougherty, Ben Casselman, Johnny Diaz, Tiffany May, Reed Abelson, Derrick Bryson Taylor, Damien Cave, Edmund Lee, Marc Tracy, Brooks Barnes, Nicholas Kulish, Sarah Kliff, Jessica Silver-Greenberg, Daniel Victor and Carlos Tejada.

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