Dow Futures Fall; Worst Slide Since Global Financial Crisis

The Friday Market Minute

  • Global stocks near correction territory, amid the worst five-day stretch since November 2008, as health officials warn of a potential cornoavirus pandemic.
  • COVID-19 cases top 83,000 worldwide, with new infections in Africa and New Zealand overnight, as governments accelerate their response procedures and biotechs race to find an effective vaccine.
  • European stocks extend slump, taking the Stoxx 600’s five-day decline to 11.6%, with basic resource and tech shares leading the decline.
  • Benchmark 10-year U.S. Treasury bond yields hit fresh all-time low of 1.15% in overnight trading, with 2-year notes slipping below 1%, as investors bet on central bank support and Fed rate cuts amid the fastest correction on record for the S&P 500.
  • The CBOE’s VIX volatility index hits a two-year high of 45.67, sending stocks reeling as investors dump risk in markets around the world.
  • U.S. equity futures suggest further opening bell declines on Wall Street ahead of earnings from Foot Locker before the start of trading and January inflation data at 8:30 am Eastern time.

Wall Street historic rout looks set to continue Friday, with futures prices pointing to extended declines for the three major benchmarks amid the worst week for world stocks since the financial crisis, as investors prepare for what could be a global coronavirus pandemic. 

Asia stocks were pummeled in overnight trading, following on from last night’s sell-off on Wall Street that hived more than 1,000 points from the Dow Jones Industrial Average for the second time this week, pulling the MSIC World stock benchmark closer to correction territory and setting up its worst five-day run since November 2008.

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