U.S. stock futures stayed mostly in the minus column on Monday, erasing steep overnight losses after the Federal Reserve unveiled new measures to keep markets working properly.
Wall Street awaited Washington lawmakers to agree to an economic stimulus and rescue plan to cushion the blow from the coronavirus outbreak.
Futures for Dow Jones Industrials dwindled 229 points, or 1.2%, early Monday to 18,811.
Futures for the S&P 500 shed 20 points, or 0.9%, at 2,268.50.
Futures for the NASDAQ Composite gained 9.75 points, on 0.1%, to 6,978.75.
Most coronavirus-impacted stocks fell again on Monday in pre-market trading as cruise line Carnival Corp. dropped 9.5% and hotel operator Hilton Worldwide dropped 5.3%.
Boeing shares rose 1% in pre-market trading, outperforming the market, as Goldman Sachs made a bold call Sunday evening, telling clients the company had enough cash to survive the coronavirus downturn and that air travel would eventually return. The shares are off 70% this year.
One of the measures taken by the Fed were an an open-ended asset purchase program, which the central bank will run in the “amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”
Overnight, futures hit their “limit down” levels, falling 5%. Downside limits to futures contracts are implemented to ensure orderly market behavior once trading hits a certain threshold. No trades below that level are allowed.
A fiscal stimulus bill failed a key procedural Senate vote Sunday as Democrats warned the measure did not do enough to help impacted workers and instead offered too much for company bailouts. House Speaker Nancy Pelosi had signaled she was not on board with the Republican version of the stimulus plan, saying: “From my standpoint, we’re apart.”
On a positive note, Senate Minority Leader Chuck Schumer, D-NY, said disagreements over the bill could be overcome in the next 24 hours. A spokesman for Schumer later added the senator and Treasury Secretary Steven Mnuchin had a “productive meeting.”
National Economic Council Director Larry Kudlow said Saturday an economic stimulus package will total more than $2 trillion, noting it will be equal to roughly 10% of U.S. economic output. Last week, President Donald Trump signed a $100 billion bill that expanded paid leave in the U.S.
Overseas, in Japan, the Nikkei 225 returned from a long weekend to gain 2%, while Hong Kong, the Hang Seng Index dumped 4.9%.
Oil prices took on 62 cents to $23.25 U.S. a barrel.
Gold prices hiked $36.60 to $1,521.20 U.S. an ounce.