A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery!
Dow Futures, as well as the market in general, are very unstable these days. The ECB announced a new Pandemic Emergency Purchase Programme to support the European economy.
Yet another sad day in Wall Street as investors see their portfolios decline by the day. The Dow futures dropped 300 points during the early Thursday trading hours. The Dow Jones Industrial Average futures, which is a major U.S. stock index was 352 points lower as off 2.43 a.m ET, this implies an opening drop of 248.92 points from yesterday’s close.
However, the drop was not a surprise, since there has been a series of freefall for the better part of this year. As of yesterday, the Dow Jones fell 6.3%, trading below 20,000 level, a mark that the index has not seen since February 2017. On the other hand, the S&P 500 has shed almost 30% since the calendar flipped.
In spite of most stock market falling, on Wednesday, the 10-year Treasury Yields rose almost 22 points to clinch at 1.18%. The rise had been supported by the Tuesday sharp uptick of the Treasure Yield, whereby it rose by more than 30 basis points.
Bigger Picture of Stock Market and Dow Futures
As of Wednesday, most futures reacted significantly after the European Central Bank (ECB) announced its new Pandemic Emergency Purchase Program of about $819 billion meant to purchase securities. The program is a mastermind idea to save the greater European economy that has been greatly affected by the ongoing coronavirus outbreak.
According to the statement, “the ECB will ensure that all sectors of the economy can benefit from supportive financing conditions that enable them to absorb this shock”. The statement added that ‘this applies equally to family firms, banks and governments. The Governing Council will do everything necessary within its mandate.’
The move was not unique as the United States’ Fed had previously announced that they plan to pump $1 trillion into the economy by buying assets and also by cutting the federal funds rates, which is now at zero.
As investors continue worrying about the high volatility due to the ongoing coronavirus outbreak, things were not all rosy for the New York Stock Exchange (NYSE), as it was compelled to temporarily halt its floor trading. For now, the company has resulted in using electronic trading only, after two of its employees tested positive with the virus.
According to billionaire Bill Ackman during an interview with the CNBC, he said that the U.S. government needs to shut down as soon as possible. He added:
“America will end as we know it. I am sorry to say so unless we take this option.”
In response to the coronavirus, the U.S. Senate passed a bill that allowed the expansion of paid leave and unemployment benefits.