Silvia Amaro, Fred Imbert
Johannes Eisele | AFP | Getty Images
As of 5:20 a.m. ET Wednesday, Dow Jones Industrial Average futures indicated a loss of more than 500 points at the open. S&P 500 and Nasdaq 100 futures also pointed to losses.
The move down in futures comes after the major averages regained a chunk of their losses on Tuesday. The Dow rallied more than 1,100 points while the S&P 500 had its best one-day performance since Dec. 26, 2018.
“Stocks posted impressive headline gains, but more strength needs to be seen beneath the surface to have confidence that the downside momentum in stocks has been broken,” Willie Delwiche, investment strategist at Baird, said in a note. “The weight of the evidence continues to argue for caution in the near term and we recommend that investors remain patient in the face of ongoing market volatility.”
Investors keep monitoring the impact of the coronavirus on all the major economies. Market players are also looking at fiscal and monetary policy responses. President Donald Trump suggested Tuesday a 0% payroll tax rate that could last until the end of the year.
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.
In terms of data, there will be monthly consumer price figures at 8:30 a.m. ET and federal budget numbers are due at 2 p.m. ET.
There are no major earnings reports scheduled for Wednesday.