Futures Hit “Limit-Down” Halt - InvestingChannel

Futures Hit “Limit-Down” Halt



Stock futures pointed to big losses on Wednesday as the markets remained highly volatile with the government response to the coronavirus fallout still unfolding.

Futures for Dow Jones Industrials caved 821 points, or 3.9%, early Wednesday to 20,039.

Futures for the S&P 500 fell 92 points, or 3.7%, at 2,393.50.

Futures for the NASDAQ Composite cratered 328 points, on 4.4%, to 7,064.25.

Futures contracts for the indices were in “limit down” territory, a situation where trading is halted after futures have hit a 5% loss and can go no lower.

A violent reversal in Treasury yields in response to a potential $1-trillion stimulus package helped to unnerve investors.

On Tuesday, the markets rebounded from their deepest rout since 1987 as investors grew hopeful that the Trump administration’s massive fiscal stimulus plans will rescue the economy, which is at risk of falling into a recession due to the coronavirus impact.

Treasury Secretary Steven Mnuchin told Republican senators that unemployment could reach 20% if Congress doesn’t enact the trillion-dollar stimulus package he proposed.

The Dow soared more than 1,000 points on Tuesday to cap off another volatile session, making back less than half of Monday’s steep losses.

Overseas, in Japan, the Nikkei 225 fell 1.7% Wednesday, while in Hong Kong, the Hang Seng Index was battered 4.2%.

Oil prices slipped $2.40 to $24.55 U.S. a barrel.

Gold prices sank $10.10 to $1,515.70 U.S. an ounce.