Futures point higher after Wall Street's steepest plunge
Send a link to a friend
[March 17, 2020] By
(Reuters) - U.S. stock index futures rose
in volatile trading on Tuesday, a day after Wall Street's steepest fall
since 1987, as drastic efforts to contain the coronavirus pandemic
paralyzed parts of the economy and crushed business sentiment.
The benchmark S&P 500 <.SPX> erased all its gains from 2019 in the
previous session as the Federal Reserve's dramatic move to cut interest
rates to near zero added to worries about the economic fallout from the
Monday marked the S&P 500's third-biggest daily percentage drop on
record, beaten only by the 1987 rout and the Great Depression crash.
"It's becoming clearer that at its peak the COVID-19 impact on the
global economy will likely be worse than the peak of the global
financial crisis," said Jim Reid, a strategist at Deutsche Bank in
As governments in the United States and Europe start shutting
restaurants and schools, as well as asking people to stay home,
strategists are downgrading growth forecasts for the second quarter.
Some investors are going so far as to contemplate outcomes more dire
than a recession, including several quarters of declining economic
activity, a credit crisis or even a depression.
The three indexes have plunged about 30% from their record closing highs
in mid February, ending the U.S. stock market's longest-ever bull run.
At 7:10 a.m. ET, Dow e-minis <1YMcv1> were up 453 points, or 2.22% and
Nasdaq 100 e-minis <NQcv1> were up 192.25 points, or 2.72%. S&P 500
e-minis <EScv1> rose 57.5 points or 2.38%.
[to top of second column]
Traders work on the floor of the New York Stock Exchange shortly
after the opening bell as trading is halted in New York, U.S., March
16, 2020. REUTERS/Lucas Jackson
Big U.S. lenders ticked higher after announcing they would access funding from
the Fed's "discount window".
Bank of America Corp <BAC.N>, Citigroup Inc <C.N>, Goldman Sachs Group Inc <GS.N>,
JP Morgan Chase & Co <JPM.N>, and Wells Fargo & Co <WFC.N> rose between 3.0% and
4.6% in premarket trading.
Boeing <BA.N> gained 3% after the planemaker said it was in talks with senior
White House officials and congressional leaders about short-term assistance for
the entire U.S. aviation sector.
Shares of carriers American Airlines <AAL.O>, United Airlines <UAL.O> and Delta
Air Lines <DAL.N> were up more than 2%.
In a bright spot for healthcare stocks, Pfizer Inc <PFE.N> gained 3% after the
drugmaker signed a deal with Germany's BioNTech SE <22UAy.F> to co-develop a
potential coronavirus vaccine.
Regeneron Pharmaceuticals Inc <REGN.O> jumped 14% after the company said it had
identified antibodies to potentially treat COVID-19.
(Reporting by Medha Singh and Sanjana Shivdas in Bengaluru; Editing by Sriraj
Kalluvila and Shounak Dasgupta)
[© 2020 Thomson Reuters. All rights
Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.