Stock futures point sell-off
U.S. stock futures fell sharply early Monday as a new coronavirus strain in the United Kingdom triggered travel bans and dented optimism that vaccines can bring a quick end to the pandemic.
As of 5:20 a.m. ET, the blue-chip Dow futures were indicated 554 points, or 1.84% lower to 29,559. The S&P 500 futures dropped 84.13 points, or 2.27% to 3,622.12 while the tech-dominated Nasdaq 100 shed 213.88 points, or 1.68% to 12,498.62.
On Sunday, Canada and several European Union nations banned travel from the UK, in response to a new strain of coronavirus that Prime Minister Boris Johnson said “may be up to 70% more transmissible” than existing variants.
Germany, France, Ireland, Belgium and the Netherlands were among eleven EU members to ban arrivals from the UK by air or train from midnight on Sunday night.
New York Gov. Andrew Cuomo urged federal officials to restrict travel, saying on a conference call with reporters that “right now, this variant in the U.K. is getting on a plane and flying to J.F.K.”
Congress reaches deal on a $900bn fiscal stimulus package
Meanwhile, top congressional leaders have finally agreed on a $900 billion coronavirus economic relief bill after months of on-again, off-again negotiations.
Senate Majority Leader Mitch McConnell, Senate Democratic leader Chuck Schumer and House Speaker Nancy Pelosi announced the deal on Sunday.
It includes a $600 direct stimulus payment to many Americans, a temporary $300 per week supplemental jobless benefit, a new round of subsidies for hard-hit businesses, and the continuation of rental and food assistance programs.
The House of Representatives and the Senate are soon expected to vote on the deal, eventually sending it to the White House to be signed by President Donald Trump to become law.
New virus strain weighs on crude
Crude future also slumped on Monday morning as the fast-spreading new coronavirus strain that was discovered in the United Kingdom sparked concerns over a slower recovery in oil demand amid travel bans and tighter restrictions in Europe.
As of 5:50 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were down $2.90, or 5.89%, to $46.34 a barrel. International Brent crude futures were at $49.27, down $2.99, or 5.72% a barrel.
The drops came after oil prices hit seven straight weeks of gains last week as traders welcomed the rollout of coronavirus vaccines.
SoftBank reportedly planning to file for SPAC IPO
SoftBank is planning to file Monday for an initial public offering of its first special purpose acquisition company (SPAC), according to a report by Axios.
The report, which cited people familiar with the matter, said that Japanese conglomerate is seeking to raise between $500 million and $600 million in the offering.
SoftBank Investment Advisers, the $100 billion vision fund manager, will oversee the SPAC seeking to acquire a company SoftBank has not previously invested in.
SPACs are publicly traded shell companies that raise funds through an IPO in the form of a blind pool. They are formed for the purpose of acquiring or merging with other companies, and have enjoyed a resurgence in popularity this year.
