Futures point to sharply lower open
U.S. stocks look set to open in the red on Wednesday, as traders continue to closely monitor the global outbreak of the novel coronavirus (COVID-19). John Hopkins University says the number of confirmed cases in the U.S. is now more than 1,000.
The total number of cases worldwide stood at 119,476 as of Wednesday morning, with more than 80,000 in China and more than 10,000 in Italy. More than 4,200 people with the deadly virus are now confirmed to have died.
As of 5:20 a.m. ET, the blue-chip Dow futures were down 356.5 points, or 1.43% to 24,492.5. Futures on the S&P 500 dropped 47.75 points, or 1.67% to 2,818 while those on the tech-heavy Nasdaq 100 fell 134.62 points, or 1.62% to 8,196.88.
Bank of England cuts rates by 50 basis points
Meanwhile, the Bank of England (BOE) unexpectedly cut half a percentage point from its benchmark interest rate to 0.25% on Wednesday, as a response to the coronavirus outbreak. At a press conference following the rate cut, outgoing Bank of England governor Mark Carney said the move will “prevent a temporary disruption from causing longer lasting economic harm.”
“The Bank of England’s role is to help UK businesses and households manage through an economic shock that could prove large and sharp but should be temporary,” Carney said. “That’s why the Bank is announcing today a comprehensive and timely package of measures to help UK households and businesses bridge across the economic disruption caused by COVID-19.”
BOE’s move comes a week after the U.S. Federal Reserve and the Bank of Canada slashed their benchmark interest rates. All eyes are now on the European Central Bank (ECB), which is expected to announce stimulus measures on Thursday.
Joe Biden cements leads with Missouri and Michigan wins
In other news, Joe Biden has cemented his status as the Democratic front-runner to challenge President Donald Trump in November. The former vice president clinched wins in Tuesday’s contests in Missouri, Mississippi, Idaho, and the pivotal state of Michigan.
North Dakota and Washington state are still too close to call, though Senator Bernie Sanders is holding a narrow lead in the latter. The upcoming March 17 contests in Florida, Arizona, Ohio, and Illinois are expected to be tough for the Vermont senator as well. In 2016, Sanders lost all of them Hillary Clinton, in many cases by huge margins.
