Warning: file_exists(): File name is longer than the maximum allowed path length on this platform (260): C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br/wp-content/cache/supercache/www.forexbr.com.br/2020/02/25/market-snapshot-stock-futures-wobble-as-investors-remain-focused-on-coronavirus-spread-outside-china/meta-wp-cache-ae1f2ca9b524cd586f8ecd37148a87d3.php in C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br\wp-content\plugins\wp-super-cache\wp-cache-phase2.php on line 71 Market Snapshot: Stock futures wobble as investors remain focused on coronavirus spread outside China – Forex Brasil

Market Snapshot: Stock futures wobble as investors remain focused on coronavirus spread outside China

U.S. stocks opened higher Wednesday as investors looked for a respite from a selling stampede that has sent equities sharply lower over the past four days amid rising worries about the economic impact of the spread of the COVID-19 epidemic outside of China.

What are major indexes doing?

The Dow Jones Industrial Average DJIA, +0.99% was up 161 points, or 0.6%, at 27,243, while S&P 500 SPX, +1.04% rose 16 points, or 0.5%, to 3,144. The Nasdaq Composite COMP, +1.32% rose 64 points, or 0.7%, to 9,030, pushing it back into positive territory for 2020. The Dow and S&P 500 are still negative year-to-date.

The Dow on Tuesday dropped 879.44 points, or 3.2%, to 27,081.36, while the S&P 500 shed 97.68 points, or 3%, to close at 3,128.21. The Nasdaq Composite dropped 225.67 points, or 2.8%, to finish at 8,965.61. Tuesday’s decline was the fourth straight for all three major indexes.

What’s driving the market

Equities recovered some ground early Wednesday even as worries about the rapid spread of COVID-19 infections and deaths outside of China continue to hang over markets, analysts said. The number of confirmed cases and deaths outside China has continued to rise, particularly in Italy, Iran, Japan and South Korea. Stocks extended losses Tuesday after the Centers for Disease Control and Prevention said Americans should prepare for the spread of the coronavirus in the U.S.

The S&P500 index suffered its first back-to-back decline of over 3% since the August 2015 China devaluation this week and registered its worst four-day slide since December 2018

COVID-19 case tally: 81,191 cases, 2,768 deaths

However, “All these developments add further credence to our view that the effects of the virus may not prove as temporary as many initially believed and that the economic wounds could well drag into Q2,” said Charalambos Pissouros, senior market analyst at JFD Group, in a note.

“With the spreading outside China appearing to be out of control at the moment, and with the world’s largest economy signaling that it is not immune to the virus, we believe that there is still room for equities to keep sliding, and safe havens to attract flows,” Pissouros said.

Read: Why one quantitative analyst says stocks may have seen their ‘darkest day’

The U.S. economic calendar is light, featuring data on new home sales for January at 10 a.m. Eastern. MarketWatch-polled analysts expect sales to run at an annualized pace of 722,000.

Which companies are in focus?
How are other markets trading?

Oil futures continued to see weakness. The price of a barrel of West Texas Intermediate crude for April delivery CLJ20, -0.06% on the New York Mercantile Exchange fell 0.9% to $49.45.

In precious metals, Gold GCJ20, -1.13% fell 0.7% to trade at $1,638 an ounce.

Demand for haven assets weakened as stock-futures traded higher. The benchmark U.S. 10-year Treasury note yield TMUBMUSD10Y, +0.49% was up 3 basis points to 1.365%. Bond yields fall as prices rise.

The U.S dollar index DXY, +0.27% was up 0.2% against a basket of its currency rivals.

Asian markets added to their drop, with Japan’s Nikkei NIK, -0.79% closing lower by 0.8%. China’s CSI 000300, -1.23% index, which tracks mainland-listed stocks, fell 1.2%.

European stocks pared their losses, with the Stoxx Europe 600 index down 0.5%. The FTSE MIB in Italy I945, +1.96% , which has the highest number of confirmed coronavirus cases in Europe, rose 1%.