Markets Sunday live updates: Futures tumble, scary China economic data, traders search for bottom

We are getting ready for another crazy week for the markets with a special live blog of the Sunday night market news. Overnight futures started trading. Check back here for live updates.

Futures on the Dow Jones Industrial Average fell about 400 points shortly after the start of overnight trading. The S&P 500 futures traded 1.6% lower. The decline in stock futures followed the major averages’ worst week since the financial crisis as the coronavirus worries caused investors to dump risk assets. To be sure, sometimes futures at this early stage can trade in extremes and not fully indicate how the full-day Monday will unfold.— Li

On Friday, stocks rapidly pared losses in the last 15 minutes of trading, which serves as the first evidence of “downside exhaustion,” according to Rich Ross, Evercore ISI’s technical analyst. Therefore, investors should use the S&P 500’s intraday low on Friday — 2,853 — as the “new line in the sand,” Ross said. Below that level, there are only two levels of support of note at 2,722 (-7%) and 2,632 (-10%), he added.— Li

One potentially bullish catalyst for stocks is former Vice President Joe Biden winning the South Carolina primary on Saturday. Biden’s victory may be seen as a positive by market participants given his more moderate stance on a number of issues, including health care. Billionaire investors such as Leon Cooperman and Jeffrey Gundlach have warned recently of a stock-market crash if far-left Democratic candidate Sen. Bernie Sanders — who had won the previous two primaries — becomes the next president. —Imbert

The Cboe Volatility Index, known as the market’s “fear gauge,” surged to above 49 last week, its highest level since 2018. And by one measure, the gauge reached a level unseen since late 2008. According to Tony Dwyer, Canaccord Genuity’s market strategist, the 10-week rate-of-change (ROC) on the VIX hit a level only seen in the height of the financial crisis. “Such extreme volatility spikes don’t mean the exact low price is in, but it does suggest the worst of volatility should be behind us,” Dwyer said.— Li


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