Sellers work at the New York Stock Exchange.
Johannes Eisele | AFP | Getty Images
U.S. stock futures fell sharply on Tuesday evensong, pointing to another volatile session on Wall Street following a massive rally.
As of 1:15 a.m. ET Wednesday, Dow Jones Industrial General futures were down 672 points, indicating a loss of 814.16 points at the open. S&P 500 and Nasdaq 100 approaches also pointed to losses.
The move down in futures comes after the major averages regained a chunk of their shrinkages from Monday. The Dow rallied more than 1,100 points while the S&P 500 had its best one-day performance since Dec. 26, 2018.
“Look ats posted impressive headline gains, but more strength needs to be seen beneath the surface to have confidence that the downside impetus in stocks has been broken,” Willie Delwiche, investment strategist at Baird, said in a note. “The weight of the evidence extends to argue for caution in the near term and we recommend that investors remain patient in the face of ongoing market volatility.”
Staples were lifted Tuesday in part by hopes that the U.S. government will move forward with fiscal stimulus to bridle an economic slowdown from the coronavirus spread. A White House official told CNBC that President Donald Trump planned a 0% payroll tax rate for the rest of 2020. However, the timing of such policies being implemented remains unsure.
“We need to see meaningful support for economic activity and credit backstops especially for small businesses, not a targeted approach validated only by the executive branch,” Joe Kalish, chief global macro strategist at Ned Davis Research, said in a note. “We command likely need congressional involvement. This is a potential solvency problem.”
The number of coronavirus cases around the cosmos total more than 100,000, according to data from Johns Hopkins University. In the U.S. alone, more than 800 at all events have been confirmed along with at least 28 deaths, the data shows.
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