Categories Markets

Market: US futures point to a lower open due to travel ban

The futures are pointing to a lower open on Thursday as the spread of the COVID-19 or coronavirus enabled the government to ban travel from most of the European countries to the US. The virus spread has infected over 1,100 Americans and killed 38. The fears of the investors have intensified about the economic fallout from the virus.

The experts predict that the brutal sell-off in the futures could signal a so-called circuit breaker when the market opens on Thursday. This means if the S&P 500 drops 7%, the market trading will be halted for 15 minutes. On Monday, trading was temporarily halted after the huge sell-off at the market open.

Check out what to expect from the major earnings reports this week.
Image for representation only (Courtesy: rabbimichoel from Pixabay)

The S&P futures dropped 5.08% to 2,601, Dow futures fell 5.22% to 22,344 and Nasdaq inched down 5.02% to 7,601.50. Elsewhere, shares at Asian markets closed lower on Thursday and the European stocks were at their lowest in almost four years.

On March 11, US ended lower, with Dow down 5.9% to 23,553.22, the Nasdaq inched down 4.7% to 7,952.05 and the S&P 500 dropped 4.9% to 2,741.38. The market remained concerned about the economic impact after the World Health Organization declared the coronavirus outbreak a global pandemic.

On Wednesday evening, President Donald Trump said from the Oval office that all travel from Europe to the United States will be suspended for the next 30 days, starting from Friday midnight. The travel restrictions do not apply to trade and cargo from Europe. Also, the government will be monitoring the situation in China and South Korea.

Read: Is the US economy heading into a recession?

The president has instructed the Small Business Administration to provide capital and liquidity to firms affected by the virus. Trump asked Congress to increase funding for those firms by an additional $50 billion and will instruct the Treasury Department to defer tax payments for certain individuals and businesses. This action is expected to provide more than $200 billion of additional liquidity to the economy.

Also Read:  Major corporate conferences to watch for the week of Sept. 14

Meanwhile, key economic data that will be released today include the weekly jobless claims, the producer price index for the month of February and the financial accounts of the US for the fourth quarter.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Palantir Technologies (PLTR) to start trading tomorrow through direct listing

The IPO market witnessed a boom in 2020, despite the pandemic weakening the macro environment. Many tech companies have witnessed a blockbuster listing this year and few more tech firms

Micron (MU) Q4 earnings, revenue top expectations

Micron Technology Inc. (NASDAQ: MU) reported strong earnings and revenue growth for the fourth quarter of 2020, benefitting from the pandemic-driven digital transformation spree. However, the company's stock dropped during

After a strong year thus far, Zynga (ZNGA) appears well-positioned for 2021 as well

Mobile game company Zynga Inc. (NASDAQ: ZNGA) has seen its stock gain 49% since the beginning of this year. The company registered strong results in the first half of 2020

One thought on “Market: US futures point to a lower open due to travel ban

Comments are closed.

Top