(C) Reuters. Traders work on the floor of the NYSE in New York
By Uday Sampath Kumar and Medha Singh
(Reuters) – U.S. stock index futures fell on Wednesday after a strong rebound in the previous session, as an imminent $2 trillion rescue package failed to completely allay investor concerns over the economic threat from the coronavirus pandemic.
After the White House and Senators agreed to the deal to aid businesses and millions of Americans hit by the health crisis, futures briefly surged but soon reversed course as traders said much of the stimulus had been priced into financial markets.
“It’s too early to be positive,” said Andrea Cicione, head of strategy at TS Lombard.
“We still haven’t seen evidence that things are improving in terms of contagion. We also haven’t fully appreciated how far this recession will go.”
The benchmark S&P 500 was nearly $8 trillion below its mid February high, and investors expect more violent swings. Wall Street’s fear gauge (VIX), which nudged lower following reports of the Senate agreeing on the stimulus package, was up 4.3 points at 66.01.
The Senate will vote on the bill later on Wednesday and the House of Representatives is expected to follow soon after.
Airlines, hotels and cruise operators, among the hardest hit U.S. sectors, were some of the biggest gainers in premarket trading.
Nike Inc (N:NKE) rose 9% after the sportswear giant beat quarterly revenue estimates and said sales in China were rebounding, helped by online orders.
Boeing Co (N:BA) continued its rally, jumping nearly 15% as sources said the planemaker planned to restart 737 MAX production by May, ending a months-long halt triggered by a safety ban.
Futures fall after bumper session as virus threat rages on
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