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Stocks - US Futures Halted; Wall Street Seen Slumping

Stock Markets Mar 18, 2020 07:05AM ET
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By Peter Nurse    

Investing.com - U.S. stocks are set to open with hefty losses Wednesday, giving back Tuesday’s gains, with investors fearful that the proposed virus stimulus package will not be sufficient to assuage severe economic damage from a protracted economic slowdown.

At 7:05 AM ET (1105 GMT), futures for the S&P 500 traded 92 points, or 3.7%, lower, futures for the Nasdaq down 330 points, or 4.5%, while the Dow Jones 30 futures contract fell 833 points, or 4%. These contracts have been stopped limit down, which suggests the cash markets could open with even greater percentage losses.

Wall Street closed with strong gains Tuesday after the Trump administration assembled a $1.2 trillion stimulus plan, that would send cash to Americans within two weeks, and backstop airlines and other companies. 

However, to get this deal past skeptical Republican senators, U.S. Treasury Secretary Steven Mnuchin warned that the country’s unemployment rate could hit 20% if they failed to act on this rescue package and there was lasting economic damage.

More and more economists including those from Wall Street’s biggest banks have declared that the outbreak has already triggered a global recession. Goldman Sachs (NYSE:GS) Goldman Sachs, for example, forecast in a note Sunday that the U.S. economy will shrink 5% in the second quarter after a 0% gain in gross domestic product growth in the first three months of the year.

In corporate news, Boeing (NYSE:BA) will be in the spotlight after the aerospace manufacturer called late Tuesday for at least $60 billion in federal aid to help the industry.

Shares in Tesla (NASDAQ:TSLA) fell more than 5% in after-hours trading Tuesday amid suggestions that its factory in Fremont, California may only maintain "minimum basic operations" as law officials declared it a non-essential business in order to slow the spread of the coronavirus. 

The economic calendar looks light Wednesday, but eyes will be on the release of the official weekly crude oil inventories, at 10:30 AM ET (1430 GMT), after the American Petroleum Institute estimated on Tuesday a surprise crude oil inventory draw of 421,000 barrels for the week ending March 13.

Oil prices continued to fall Wednesday with U.S. crude futures tumbling to a 17-year low as travel and social lockdowns sparked by the coronavirus epidemic knocked the outlook for demand.

AT 07:10 AM ET (1110 GMT), U.S. crude futures traded 5.6% lower at $25.80 a barrel, having earlier fallen to $25.51, its lowest since May 2003. The international benchmark Brent contract fell 3.5% to $27.74, just off $27.57, its lowest since early 2016.

Additionally, gold futures fell 1.8% to $1,497.70/oz, while the euro traded at $1.0990, down 0.1%.

Stocks - US Futures Halted; Wall Street Seen Slumping
 

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Comments (14)
Shawn Fegely
Shawn Fegely Mar 18, 2020 1:16PM ET
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Free oil for everyone!
Jay King
Jay King Mar 18, 2020 10:55AM ET
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warren buffet said I'm 89 and I 'm so lucky that I can see market meltdown crash in 3 days in my life . make me lose billions what make me think will be next
Khalsa Singh
Khalsa Singh Mar 18, 2020 10:54AM ET
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For my understanding, if boring get federal bailout wilm the stock tank or soar?
Khalsa Singh
Khalsa Singh Mar 18, 2020 10:54AM ET
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Boeing..
Happy Trader
Happy Trader Mar 18, 2020 10:54AM ET
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Boeing does not deserve a penny. They bought back their shares back with profit pumping stock prices even more so the execs get their $$$$$$$ bonuses. It tanked because these fat cats dumped their private mega shares.
Earl castelo
Earl castelo Mar 18, 2020 10:33AM ET
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If this isn't a black swan event, I dont know what is.
Jerome NY
Jeff_Musk Mar 18, 2020 9:21AM ET
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Too much fear is being made by the people who gets bebefit from falling market.
Andrew Paeth
Andrew Paeth Mar 18, 2020 9:06AM ET
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The rats are running to the hills... Social Security and other govt offices shutting down "to prevent risk to the elderly"...haha more like so no one attacks the employees. This is how rats, cockroaches, politicians, lawyers and public workers survive any tragedy. They run away...
Brent Shields
Brent Shields Mar 18, 2020 8:57AM ET
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if you worked in medical you would see empty isolation wards but then see stories saying not enough medical staff u guys have no clue how much u are being lied to i work on one of those wards
Michael Chen
Michael Chen Mar 18, 2020 8:52AM ET
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Market crash is due to uncertainty caused by Covic 19, and the problem takes time to resolved. But this may take less than 2 months if China experiences can be used as reference. Such a period may not be that damaging. The problem will be aggrivated by stock market crash too much too fast, and a hugh financial crisis shall ensue. Therefore steps should be taken to mitigate uncontrolable market slide. This sharp fall partly is due to many short sellers. Therefore government across the globe should seriously consider restricting short selling as a joint effort to contain market crash. Otherwise it just need days for the market to wipe out all genuine investors, even the gurus like Warren Buffet is also hard hit. Time for governments to take this drastic action!
greg mason
greg mason Mar 18, 2020 8:46AM ET
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Terry Duffy of CME Group said it right on Bloomsberg the other day go listen to his interview. Reduce the % of  Breaker Limits down for one, he had some really good points.
jemin An
jemin An Mar 18, 2020 8:31AM ET
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Yesterday market went reverse, too much technical rebound, today's futures fall to limit down shows what is the direction of market.
 
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