Futures rise sharply
U.S. stock futures were sharply higher ahead of Friday’s open, as traders cheered new measures taken by governments and central banks around the world to protect economies from the impact of the novel coronavirus pandemic.
By 5:20 a.m. ET, the blue-chip Dow futures rallied 860.5 points, or about 4.33% to 20,735.5. The S&P 500 futures rose 97.5 points, or around 4.08% to 2,486.50 while the tech-heavy Nasdaq 100 futures indicated a gain of 357.5 points, or roughly 4.92% to 7,631.
On Thursday, the Bank of England slashed interest rates from 0.25% to 0.1%, in a second emergency cut prompted by the pandemic. The Bank further plans to increase its holdings of corporate and government bonds by £200 billion ($244 billion) in a bid to lower the cost of borrowing.
The European Central Bank also unveiled a program to pump cash into credit markets by buying up to €750 billion ($822.5 billion) in bonds. According to the ECB, the program will last until the end of the year.
Stimulus measures lift crude prices
Crude oil prices extended a rebound Friday, buoyed by the widespread fiscal stimulus measures unveiled to counter the Covid-19 pandemic and reports that President Donald Trump might resort to economic sanctions to end the oil price war between Saudi Arabia and Russia.
As of 5:20 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were up $1.97 points, or around 7.6%, at $27.88 per barrel. International Brent crude oil futures were at $30.46 a barrel, up $1.99, or about 0.7%.
The Wall Street Journal reported Thursday that the White House is considering more direct intervention to bring the two oil giants back to the table and stabilize prices.
Global coronavirus death toll tops 10,000; Californians ordered to stay home
Meanwhile, data compiled by Johns Hopkins University shows that the novel coronavirus has infected more than 244,500 people and claimed over 10,000 lives worldwide. The most affected countries are China, Iran, Italy and Spain.
In Italy, the number of deaths from the virus has jumped to more than 3,400, surpassing China’s death toll, which stands at 3,248. The U.S. has more than 14,500 cases and 205 deaths.
On Thursday, California governor Gavin Newson ordered all 40 million residents of the state to stay in their homes as much as possible to help combat the spread of the virus.
