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Stocks - U.S. Futures Suspended Limit Down Despite Fed Moves

Stock MarketsMar 16, 2020 07:05AM ET
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By Peter Nurse    

Investing.com - U.S. stocks are set to post hefty losses at the open Monday, with investors greeting Sunday’s moves by the Federal Reserve to mitigate the economic damage from a spreading coronavirus pandemic with mounting anxiety.

At 7:05 AM ET (1105 GMT), futures for the S&P 500 traded 4.8% lower, futures for the Nasdaq 100 down 4.6%, while the DJI futures contract fell 4.6%. These contracts were suspended after plunging to hit their daily limits, suggesting the cash markets could open even lower.

The Federal Reserve held an emergency meeting Sunday, cutting short-term rates to a target range of 0% to 0.25%, announcing at least $700 billion in purchases of Treasuries and mortgage-backed securities in coming weeks and offering cheap dollar financing to financial institutions around the world facing stress in credit markets.

These moves come as governments around the world sought to stem the spread of the virus that has infected over 169,000 people globally and killed more than 6,500.

In the U.S., there have been school closings, runs on grocery stores, shuttered restaurants and retailers, and ends to sports events. 

Shares in United Airlines (NASDAQ:UAL) dropped over 16% in premarket trading after the company said it’s slashing its flight schedule by 50% for the next two months, seeing revenue in March down $1.5 billion from last year. Shares in American Airlines (NASDAQ:AAL) and Delta Airlines (NYSE:DAL) are also sharply lower.

Shares in Apple (NASDAQ:AAPL) fell over 11% in premarket trading after announcing it is closing all of its stores outside greater China until at least March 27. This matches the response of a number of retailers, including Nike (NYSE:NKE) and Urban Outfitters (NASDAQ:URBN).

Shares in cruise operator Carnival (NYSE:CCL) dropped over 20% premarket after it cancelled all its North American cruise lines for at least a month, amid a drop in global demand for holidays due to the spread of coronavirus.

Elsewhere, the oil market has been hammered by the combination of a hit to demand from the economic slowdown caused by the coronavirus and a price war between Saudi Arabia and Russia, two of the globe’s largest producers.

AT 07:10 AM ET (1110 GMT), U.S. crude futures traded 6.5% lower at $30.03 a barrel. The international benchmark Brent contract fell 9.4% to $30.66. 

Additionally, gold futures fell 2.7% to $1,474.10/oz, while the euro traded at $1.1160, up 0.5%.

Stocks - U.S. Futures Suspended Limit Down Despite Fed Moves
 

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Comments (13)
Áryan Áltair
Áryan Áltair Mar 16, 2020 10:25AM ET
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I am not racist but has anyone noticed how like almost every virus stats off n China 🇨🇳
Bajrang Modi
Bajrang Modi Mar 16, 2020 10:25AM ET
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I am agry with you
Space Lord
Space Lord Mar 16, 2020 9:23AM ET
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Happy chinese tourists in Milan in the picture shown
Carlos Pasqua
Carkis Mar 16, 2020 9:12AM ET
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Is the world ending?
alex gallegos
alex gallegos Mar 16, 2020 9:12AM ET
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No, there will still be homosapiens to carry on our lineage.
Gamer Turtle
GamerTurtle Mar 16, 2020 8:46AM ET
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fed is curing virus through monetary policy... a new definition of panic. LOL
Eloy Rodrigo
Eloy Rodrigo Mar 16, 2020 8:31AM ET
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Time to buy. Time in which the 0.1% richer becomes richer and the rest becomes poorer.
Teh Olympian
Teh Olympian Mar 16, 2020 8:31AM ET
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No, not yet... Maybe another 40% off from Friday's close, then it's time to ride the market up...
Matt Kay
Matt Kay Mar 16, 2020 8:31AM ET
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20% down today?
Ran Wiz
Ran Wiz Mar 16, 2020 8:30AM ET
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Fed lowers interest rates. ALL other interest rates falling correspondingly EXCEPT home mortgage rates which are spiking UP. Defies any logic I can see. What am I missing?
Rebecca Mulville
Rebecca Mulville Mar 16, 2020 8:12AM ET
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Today is March16 16th 2020
Rebecca Mulville
Rebecca Mulville Mar 16, 2020 8:12AM ET
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Advertizing works
Rebecca Mulville
Rebecca Mulville Mar 16, 2020 8:12AM ET
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Theun Golf range on Manotic should be opening soon.
Rebecca Mulville
Rebecca Mulville Mar 16, 2020 8:11AM ET
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Riau is March16 that 2020
Notvery Goodathis
Peteymcletey Mar 16, 2020 8:10AM ET
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Hopefully short selling is temporarily banned for a while.
Joeri Willems
Jurinho Mar 16, 2020 8:10AM ET
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why does it need to be banned? If nobody wants to sell the short contract, then nobody can buy it. It is a free market.
Al Vlaj
alvlaj Mar 16, 2020 8:10AM ET
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It’s the very ability to short that makes the market liquid.
Michael Jones
Michael Jones Mar 16, 2020 8:06AM ET
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just be careful today getting short. they might close the market and we'll be stuck.
Joeri Willems
Jurinho Mar 16, 2020 8:06AM ET
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every panic attempt to stop the market fallout, will cause even more fallout.
George Pichurov
George Pichurov Mar 16, 2020 8:01AM ET
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Not despite, but because of
Al Vlaj
alvlaj Mar 16, 2020 8:01AM ET
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Exactly!  What genius thought that emergency cutting to zero ON A SUNDAY would give investors a sense of calm?
Robert Cox
Robert Cox Mar 16, 2020 8:01AM ET
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Especially three days before a regulary-scheduled meeting?
John Klan
John Klan Mar 16, 2020 7:56AM ET
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About to ease into some FB, HD, C ,TGT and MS.
Matt Novakovich
Matt Novakovich Mar 16, 2020 7:56AM ET
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thank you ,you can help pay for their bankruptcy proceedings
Joeri Willems
Jurinho Mar 16, 2020 7:56AM ET
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I STRONGLY suggest you to wait at LEAST a month before jumping back in. Thank me later in a reply to this EXACT post.
Joeri Willems
Jurinho Mar 16, 2020 7:56AM ET
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PS my calculations tell me the first bottom is between 150 and 160 on QQQ. Currently pre-open it is trading at 175.
 
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