Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Stocks - U.S. Futures Waver as Wall St Attempts Bounce After Epic Rout

Published 02/26/2020, 06:57 AM
Updated 02/26/2020, 06:58 AM
© Reuters.
XAU/USD
-
US500
-
DJI
-
GC
-
ESH25
-
CL
-
1YMH25
-
NQH25
-
IXIC
-
US10YT=X
-

By Noreen Burke

Investing.com - Dow futures fluctuated between gains and losses on Wednesday as Wall Street attempted to struggle back after an epic two-day selloff on the back of concerns over the global economic impact of coronavirus.

By around 06:50 AM ET (1150 GMT) Dow futures were up 14 points, reversing course after dropping around 160 points earlier. S&P 500 futures and Nasdaq 100 futures rose 0.2% and 0.3%, respectively.

The Dow tumbled 3.1% on Tuesday, bringing its two-day loss to more than 1,900 points after finishing Monday down nearly 880 points.

The S&P 500 and the Nasdaq also finished sharply lower Tuesday, while U.S. 10-year Treasury yields hit a record low amid a broad-based flight to safety on concerns about the global economic impact of the outbreak.

Late on Tuesday, the U.S. Centers for Disease Control and Prevention alerted Americans to begin preparing for a likely outbreak in the U.S. President Donald Trump tweeted that he would give a briefing on the situation later Wednesday, having said on Tuesday that "CDC and my administration are doing a GREAT job of handling coronavirus." White House economic adviser Larry Kudlow said U.S. containment of the disease was "nearly airtight."

Fears of a pandemic escalated on Wednesday after Asia reported hundreds of new cases from South Korea (including the first U.S. soldier to be infected) to Kuwait, while outbreaks in Italy and Iran spread to other countries.

Although the disease is believed to have peaked in China, where it first originated late last year, the resulting hit to factory output and consumer spending have threatened global economic growth in 2020.

"The market's realizing that though the pace of the infections looked like it was slowing, it's still spreading globally," said Shawn Cruz, manager of trader strategy at TD Ameritrade in Jersey City, New Jersey.

While investors had hoped the economic impact of the virus would be contained to the first quarter, Cruz said many are now estimating that "it's going to have an impact on the first half of 2020 and probably beyond."

Elsewhere, U.S. crude oil futures fell 1.3% to $49.26, having earlier hit a 13-month low. Gold futures remained well bid above $1,650 an ounce, even though U.S. Treasury bond yields ticked up.

--Reuters contributed to this report

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.