US futures hit daily down limit
U S stock index futures have tumbled to open trading, hitting their daily down limit, after the Federal Reserve took drastic action to cushion the economic blow from the escalating coronavirus.
The US central bank slashed rates back to near zero, restarted bond buying and joined with other central banks to ensure liquidity in dollar lending.
The extent of the action, taken ahead of the Fed’s regularly scheduled meeting that had been set for Tuesday and Wednesday, signalled to some investors that the central bank was very concerned about the economy.
The Fed’s actions came as France and Spain joined Italy in imposing lockdowns on tens of millions of people and as panic buying in Australia, the United States and Britain saw leaders appeal for calm over the virus that has infected over , (people globally and killed more than 5,
.
S&P 800 e-minis fell .5 points, or 4. Nasdaq 156 e-minis were down 728. (points, or 4.) %. Dow e-minis were down 1, points , or 4. 58%.
After-hours trading in the futures contract for the benchmark S&P 800 stock index reached the limit shortly after trading opened. The decline indicates how much the S&P might fall when trading begins on Monday.
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