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U.S. stock futures rose Tuesday morning in choppy trade, with markets attempting to stage a modest rebound a day after the Dow Jones Industrial Average logged a 3,000-point loss amid fears that the coronavirus pandemic could last longer than expected in the U.S.
How did stocks perform?
Dow Jones Industrial Average futures YMH20, +0.63% were last up about 462 points, or 2.2%, to 20,759, while S&P 500 index futures ESH20, +0.57% climbed 55.45 points, or 2.3%, to 2,460.75. Nasdaq-100 NQH20, +1.27% futures rose 7,233.75 points, or 2.7%, to 7,232.75.
On Monday, the Dow Jones Industrial Average DJIA, -12.93% plunged 2,997.10 points, or 12.9%, to settle at 20,188.52, while the S&P 500 index SPX, -11.98% declined 324.89 points, or 12%, to end at 2,386.13, and the Nasdaq Composite Index COMP, -12.32% shed 970.28 points, or 12.3%, to finish at 6,904.59, marking the worst day in the history for the technology-heavy index.
For the third time in the month on Monday, initial circuit breakers temporarily halted trading for 15 minutes at one point.
The Dow is off 32% from its Feb 12 record closing high, the S&P 500 and Nasdaq are off by about 30% from their Feb. 19 peaks.
What’s driving the market?
The U.S. has been shutting down cities and investors have been overwhelmed by rapid-fire updates on coronavirus, including a warning by President Donald Trump of a possible recession due to the outbreak and the possibility that the viral outbreak could last deep into the summer.
Deepening anxieties have come even after the Federal Reserve’s emergency Sunday interest-rate cut, which has done little to spark any buying on Wall Street.
The mostly downtrodden mood on Wall Street has been attributed to investors’ unfulfilled desire for more relief for individuals and small businesses and even some major cooperations that have been pummeled by the epidemic.
The Wall Street Journal reported that U.S. airlines are seeking $50 billion in financial assistance from the government, which would be three times the size of the industry’s bailout after the Sept. 11 attacks, according to the business publication.
Details are still under discussion with Trump administration officials and congressional leaders, according to the report.
Those reported efforts come as governments and central banks around the world attempt to curtail the negative effects from travel disruptions and business closures that have occurred due strategies in place to mitigate the spread of the deadly disease.
“Hence, governments around the world are seeking other measures to calm down the markets’ nerves. The U.K. promised extra help for businesses battling the virus-led slowdown, and temporary business shutdowns. France pledged to allocate 300 billion euros of bank loans to companies hit by the pandemic. Spain banned short selling for a month to contain the heavy volatility that may cause additional damage to the financial system,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a note to clients.
See: Romney, other lawmakers call for sending $1,000 checks to Americans as part of coronavirus response
Read: Senate seen passing coronavirus bill around midweek, as lawmakers also work more aid
On the U.S. economic front, Tuesday will see the release of several data points, including February retail sales at 8:30 a.m. Eastern Time, a report on industrial production at 9:15 a.m., one on business inventories and separate housing market index reading, both at 10 a.m., as well as a report on job openings at the same time.
Which companies were in focus?
The coronavirus has hammered shares of United Airlines Holdings Inc. UAL, -14.82% and American Airlines Group Inc. AAL, +11.25% as well as Delta Air Lines Inc. DAL, -6.65%.
Boeing Co. BA, -23.85% was downgraded by S&P Ratings late Monday cut the aeronautics company’s credit rating to one rung above junk, or noninvestment grade, citing halts due to COVID-19 and the grounded of the airline maker’s 737 MAX fleet.
How are other markets trading?
On Monday, the rate on the benchmark 10-year Treasury note TMUBMUSD10Y, +6.43% was up 8.4 basis points at 0.81%, after notching its largest single-day yield decline since March 18, 2009, according to Dow Jones Market Data.
West Texas Intermediate crude, the U.S. gauge of crude prices CLK20, +1.38% was trading up 2.3% at $29.34 a barrel on the New York Mercantile Exchange, following its lowest finish since 2016. In gold futures for April GCJ20, -1.03% futures were down 1.1% to trade at $1,470.30 an ounce on Comex./
In currencies, the ICE U.S. dollar index DXY, +1.32% which tracks the greenback’s performance against a basket of its major rivals, was up 1.1% after falling 0.6% on Monday.
Global equities tumbled on Monday. China’s CSI 300 000300, -0.49% closed 0.4% lower, while Japan’s Nikkei index NIK, +0.06% advance less than 0.1%. The Stoxx Europe 600 index SXXP, -1.09% slumped 1.4% after falling nearly 5% a day ago.
