U.S. stock futures were lower Thursday morning, following a massive rally in the previous session.
At around 3:45 a.m. ET, Dow Jones Industrial Average futures slipped 308 points, indicating a negative open of more than 414 points. S&P 500 and Nasdaq-100 futures were both slightly lower.
The pre-market moves came amid a roller-coaster week for stocks on Wall Street, which saw the 30-stock Dow swinging 1,000 points or higher two times within three days. Following a surge on Wednesday, the three major averages stateside moved out of correction territory, meaning they are now less than 10% down from their 52-week highs.
A series of factors have been driving investor sentiment, ranging from developments around the coronavirus outbreak that continued to spread globally to former Vice President Joe Biden’s major wins during Super Tuesday.
Earlier in the week, the Federal Reserve also cut its benchmark interest rate unexpectedly by 50 basis points, citing that coronavirus which “poses evolving risks to economic activity.” It was the central bank’s first such emergency cut since the 2008 financial crisis.
You have to wonder why (the Fed’s) acting like this and you have to wonder especially why they’re using their very, very sparse ammunition up — a 50 basis point cut — very early in a crisis.
Richard Harris
Chief Executive, Port Shelter Investment Management
The move failed to assuage stock market concerns about the potential economic impact of the coronavirus outbreak while triggering sharp movements in the bond markets, with the yield on the benchmark 10-year Treasury note dropping below 1% for the first time ever. The 10-year Treasury yield was last trading at 1.0068%.
“We’re nowhere near the sort of situation where the Fed should be acting like this,” Richard Harris, chief executive at Port Shelter Investment Management, told CNBC’s “Street Signs Asia” on Thursday morning.
“You have to wonder why (the Fed’s) acting like this and you have to wonder especially why they’re using their very, very sparse ammunition up — a 50 basis point cut — very early in a crisis,” Harris said.
— CNBC’s Fred Imbert contributed to this report.
