  Warm dense matter (WDM) -- an exotic state of highly compressed matter -- has
attracted high interest in recent years in astrophysics and for dense
laboratory systems. At the same time, this state is extremely difficult to
treat theoretically. This is due to the simultaneous appearance of quantum
degeneracy, Coulomb correlations and thermal effects, as well as the overlap of
plasma and condensed phases. Recent breakthroughs are due to the successful
application of density functional theory (DFT) methods which, however, often
lack the necessary accuracy and predictive capability for WDM applications. The
situation has changed with the availability of the first \textit{ab initio}
data for the exchange-correlation free energy of the warm dense uniform
electron gas (UEG) that were obtained by quantum Monte Carlo (QMC) simulations,
for recent reviews, see Dornheim \textit{et al.}, Phys. Plasmas \textbf{24},
056303 (2017) and Phys. Rep. \textbf{744}, 1-86 (2018). In the present article
we review recent further progress in QMC simulations of the warm dense UEG:
namely, \textit{ab initio} results for the static local field correction $G(q)$
and for the dynamic structure factor $S(q,\omega)$. These data are of key
relevance for the comparison with x-ray scattering experiments at free electron
laser facilities and for the improvement of theoretical models.
  In the second part of this paper we discuss simulations of WDM out of
equilibrium. The theoretical approaches include Born-Oppenheimer molecular
dynamics, quantum kinetic theory, time-dependent DFT and hydrodynamics. Here we
analyze strengths and limitations of these methods and argue that progress in
WDM simulations will require a suitable combination of all methods. A
particular role might be played by quantum hydrodynamics, and we concentrate on
problems, recent progress, and possible improvements of this method.
