The futures market already had a volatile overnight session. Stocks are set to open lower. Check here for live updates.
Futures on the Dow Jones Industrial Average erased early losses, now up about 211 points.Â S&P 500Â andÂ NasdaqÂ futures also pointed to gains at the open. Traders are betting on coordinated action from global central banks to offset the negative economic impact from the coronavirus.âLi
The U.S. Treasury 10-year yield could fall further into record-low territory and eventually reach 0.75%, stratetgist Komal Sri-Kumar said. “Usually, when the yield starts to go down, it goes down very fast,” he said on CNBC’s “Squawk Box.” “Now that we are almost at 1% â¦ my next target is 0.75%.” He noted that inflation and economic growth expectations all suggest the benchmark rate will go lower. The 10-year yield hit a record low overnight, breaking below 1.04% for the first time ever. âImbert
Markets have no doubt that the Federal Reserve is about to come through with some serious interest rate cuts to combat a slowdown related to the novel coronavirus. Traders have completely priced in a 50 basis point reduction by the central bank’s March meeting, a 75% chance of another 25 basis points in April, and a 70% probability for one more 25 basis point move by September, according to the CME’s FedWatch tracker. That’s not all: The market is assigning a 40% chance for one more move in December that would take the overnight funds rate down to a range of 0.25%-0.5%, and a non-negligible 10% probability of going all the way to zero. On the latter point, JP Morgan economists sees an even bigger likelihood â the firm’s economists think there’s a 1 in 3 chance that the Fed goes to zero by the end of summer. â Cox
Shares of Apple rose 1.7% in premarket after Oppenheimer upgraded the tech giant, saying that the company’s products and strong balance sheet should help it withstand any economic uncertainty due to the coronavirus. “We believe Apple products and services will prove more resilient than competitive products in uncertain times,” analyst Andrew Uerkwitz said. The firm also said the company is a “recurring revenue machine” and said the tech giant should be able to withstand any coronavirus fears.â Bloom