Traders work on the floor at the New York Stock Exchange, March 2, 2020.
Brendan McDermid | Reuters
This is a developing story. Check back for updates.
Stock market futures on Monday evening pointed to losses at the Tuesday open following the roaring comeback rally that saw the Dow Jones Industrial Average post its biggest percentage gain since March 2009 and largest ever point surge.
As of 6:31 p.m. ET Monday, Dow futures were up 81 points but pointed to an implied opening loss of 143.32 points on Tuesday. S&P 500 and Nasdaq-100 futures also pointed to losses for the two indexes at Tuesday’s open.
Dow futures had jumped about 150 points earlier in the session, amid expectations of big central bank stimulus over the coming days to boost the economy and markets. Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will lead an emergency call of the G-7 on Tuesday at 7 a.m. ET, CNBC’s Steve Liesman reported. This will be a “coordinating call” for the financial and economic response to the coronavirus, a source familiar told CNBC. A group statement will be sent after the call.
Monday saw U.S. stocks snap a losing streak that had gone on for over a week. Some investors are skeptical that the rally has legs without a significant central bank response. Even if that comes to fruition, investors have their doubts the market has seen the end of its tumultuous trading of the last six days.
Jeff Mills, the chief investment officer at Bryn Mawr Trust, said on “Power Lunch” that he was not advising clients to buy back into the market and that Monday’s rally was just a “technical snapback.”
“I think the spectrum of outcomes is so wide here that one trading day is not going to resolve all of our issues, so we’re telling our clients just to sit tight for now,” Mills said.
The U.S. stock marked saw a historic bounce back on Monday, with the Dow gaining nearly 1,300 points. The Dow finished up 5.1% on the the day, while the S&P 500 gained 4.6%.
Some expect central banks around the world to announce a coordinated policy response to fight the coronavirus. Goldman Sachs chief economist Jan Hatzius said on “Closing Bell” that he expects most central banks for G10 countries to cut rates, with only the Bank of Japan abstaining.
Futures traders are expecting aggressive action from the Federal Reserve in particular, with the CME Fed Watch tool showing that the market has priced in 75 basis points of cuts through April.
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