Dow futures pointed to an opening drop of 1300 points. Treasury yields plunge amid an oil price war, CNBC reported. As predicted, there is a worldwide selloff and the Dow is currently down 1600 points. It opened to 1900 points down. The market closed for fifteen minutes today. The market is still oversold and some of this is a correction.
Stock futures cratered Monday as investors braced for the economic fallout from the spreading coronavirus, while a shocking all-out oil price war added to the anxiety.
The S&P 500 futures and Nasdaq-100 futures also indicated significant losses at Monday’s open.
Saudi Arabia on Saturday slashed official crude selling prices for April, in a sudden U-turn from previous attempts to support the oil market as the coronavirus hammers global demand.
Investors are worried about interruptions in the global supply chain, which could tip the economy into a recession.
Dr. Drew on the coronavirus: “Businesses are getting destroyed and people’s lives are being upended not by the virus, but by the panic. The panic must stop. And the press, they really somehow need to be held accountable because they are hurting people”pic.twitter.com/as2xu0Am8E
— Ryan Saavedra (@RealSaavedra) March 9, 2020
There is a good chance the Federal Reserve will slash the interest rates three-quarters of a percentage point at its upcoming March meeting.
Driving this are concerns over Coronavirus cases spiking in the U.S. over the weekend. Overseas, Italy shut down a key economic hub to contain the spread of the virus.
This year’s flu season has killed 8,200 people, with at least 15 million cases — and that’s just in the U.S. We have a vaccine, but most people don’t bother to get vaccinated. The difference with the so far less lethal Coronavirus is that it’s new and headline-grabbing. People don’t know it’s potential. And it spreads easily, which is leading to quarantines and possible disruptions in global supply.
Most illnesses are preventable by exercising proper precautions. Keep washing your hands. If you’re older, stay out of crowded areas.
“When we think about the relative danger of this new coronavirus and influenza … coronavirus will be a blip on the horizon in comparison,” William Schaffner, a professor of preventive medicine at Vanderbilt University, told Kaiser Health News.
The media is stirring up hysteria this morning.