Left Menu
Development News Edition

US STOCKS-Futures slide as coronavirus spreads beyond China

Reuters | Washington DC | Updated: 21-02-2020 18:32 IST | Created: 21-02-2020 18:24 IST
US STOCKS-Futures slide as coronavirus spreads beyond China
Representative image Image Credit: Pixabay

U.S. stock index futures lurched downwards on Friday as a spike in new coronavirus cases in China and elsewhere sent investors scrambling for safer assets such as gold and government bonds.

The risk-off mood was exacerbated by data showing Japan's factory activity suffered its steepest contraction in seven years in February, underlining the risk of a recession in the world's third-largest economy as the outbreak takes a toll on global growth. With massive disruptions in supplies from China, parts shortages are hitting businesses as far away as the United States.

U.S. stocks fell about 1% at one point on Thursday, with high-growth stocks including Microsoft Corp and Apple Inc taking the biggest hit. Beijing reported an uptick in cases of coronavirus on Friday and South Korea reported 100 new cases that doubled its infections, while more than 80 people have tested positive for the virus in Japan.

Although daily updates on the spread of the virus have kept investors on edge, hopes that central banks across the globe will take measures to counter any slowdown have cushioned global stocks and kept the benchmark S&P 500 near all-time highs. At 7:15 a.m. ET, Dow e-minis were down 100 points, or 0.34%. S&P 500 e-minis were down 12.75 points, or 0.38% and Nasdaq 100 e-minis were down 44.5 points, or 0.46%.

Investors will keep an eye on IHS Markit's U.S. manufacturing and services sector activity data for February, due at 9:45 a.m. ET, to gauge the impact of coronavirus on businesses. A host of Federal Reserve officials including Dallas Fed's Robert Kaplan and Cleveland Fed President Loretta Mester - both voting members of the interest-rate setting committee this year - are set to speak later in the day.

Traders are looking for signs on whether the Fed will cut rates this year amid fears of the coronavirus outbreak denting global growth. However, recent data has suggested the U.S. economy is showing no signs of losing steam. Among stocks, Dropbox Inc jumped 11.9% in premarket trading after it raised its outlook for operating margin and announced a $600 million share buyback, while Deere & Co rose 8.2% after an unexpected rise in first-quarter profit.

Sprint Corp climbed 5.5% as it announced new merger terms with T-Mobile US that would reduce the stake of major Sprint shareholder SoftBank. T-Mobile shares dipped 1%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION / BLOG / INTERVIEW

Education post-coronavirus: Schools to rush for more digitalization

Digital education would undoubtedly boom in the post-coronavirus world, supported by educational institutions that have discovered its efficiency during the crisis, but it is still not expected to outshine traditional classroom learning....

Public health care post-COVID 19 to go for revamping, not rebooting

Until now, the economies used to classify healthcare sector under social expenditure. However, the devastation caused by COVID 19 pandemic has upgraded public healthcare on topmost priority and core economic activity for controlling future ...

Coronavirus lockdowns to speed up long-pending revamping of supply chains

With millions of production lines impacted, business disruptions to some extent are unavoidable and the lessons learned from this turbulence will leave an everlasting impact on both global and local levels of supply chains....

COVID 19 to catalyze the redefinition of urban planning and sustainability

Until now the urban planning was focused on mitigation to natural disastrous, climate change, pollution, chronic illness and lifestyle diseases. However, the global pandemic of novel coronavirus is going to change the whole narrative of urb...

Videos

Latest News

New Orleans doctors scramble as coronavirus deaths, cases soar

Emergency room doctor Thomas Krajewski stopped at the hospital room door at 2 a.m. to glance at the chart. He knew instantly the long odds faced by the patient inside A man in his 70s, with a fever, short of breath.Do you mind calling my so...

FEATURE-Isolation and HIV memories hit LGBT+ elderly hard in lockdowns

By Rachel Savage and Oscar Lopez STROUD, England MEXICO CITY, March 30 Thomson Reuters Foundation - A s lockdowns are imposed around the world to stop the spread of coronavirus, LGBT groups are scrambling to support older members of their ...

Pakistani squash great Azam Khan dies of coronavirus in London

Pakistani squash legend Azam Khan has died of coronavirus in London, his family said. Azam, who won the British Open title successively between 1959 and 1961, had tested positive for COVID-19 last week and died at Londons Ealing Hospital on...

8 new COVID-19 cases in MP; total reaches 47

Eight new COVID-19 cases have been found in Madhya Pradesh, taking the total number of coronavirus patients in the state to 47, a senior health official said on Monday. Of the eight new cases, seven were reported from Indore and one from Uj...

Give Feedback