Futures losses accelerate as Wall Street is in for another wild day, Dow set to drop 800 points

U.S. stock futures fell sharply on Wednesday as investors worried about a possible fiscal stimulus package aimed at curbing slower economic growth due to the coronavirus outbreak.

© Thomson Reuters The trading floor of the New York Stock Exchange (NYSE) is seen in New York City, New York, U.S., March 10, 2020.

Around 9:03 a.m. ET, Dow Jones Industrial Average futures indicated a loss of more than 900 points at the open. S&P 500 and Nasdaq 100 futures also pointed to steep losses.

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Oil prices fell along with Treasury yields. U.S. crude fell more than 3% to $33.17 per barrel. Meanwhile, the benchmark 10-year note yield traded at 0.7%.

President Donald Trump suggested Tuesday a 0% payroll tax rate that could last until the end of the year. However, the timing of such policies being implemented remains uncertain.

Trump’s comment came as the number of coronavirus cases around the world total more than 100,000, according to data from Johns Hopkins University. In the U.S. alone, more than 1,000 cases have been confirmed. This increase in cases added to fears of a global economic slowdown and have increased calls for government intervention.

“We need to see meaningful support for economic activity and credit backstops especially for small businesses, not a targeted approach executed only by the executive branch,” Joe Kalish, chief global macro strategist at Ned Davis Research, said in a note. “We will likely need congressional involvement. This is a potential solvency problem.”

Central banks have also acted to curb slower economic growth. The Bank of England on Wednesday cut its benchmark rate by 50 basis points to 0.25%. The move follows a 50 basis-point rate cut by the Federal Reserve earlier this month.

The uncertainty around fiscal stimulus, coupled with a reduction in travel demand and rising coronavirus cases, pressured airline and cruise line stocks. American, Delta, United and JetBlue all fell more than 2% in the premarket. Norwegian Cruise Line and Carnival fell 4.4% and 7%, respectively.

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