Dow Jones Industrial Average futures fell 531 points, pointing to a Monday opening drop of around 500 points. S&P 500 futures dropped 1.8
Stock futures were following a decline in U.S.
The May contract for West Texas Intermediate, which expires on Tuesday, plunged more than 28% to $13.02 per barrel on weak demand outlook and storage capacity issues.
The negative impact on stock futures from oil likely would have been worse were it not for lesser declines in oil contracts expiring during future months. WTI’s June contract slid over 8% to $22.78 per barrel. July’s oil contract was down 5%. It was a strange phenomenon that analysts chalked up to the collapse in demand for oil contracts expiring this week. Refineries don’t need the oil and are near storage capacity
“The moves in the oil market are really just unbelievable now that we are literally running out of storage space,” Peter Boockvar, chief investment officer
Stocks got a jolt after a report last week said patients with severe virus symptoms were quickly
Last week’s gains also put the S&P 500 and Dow more than 30% above their
New York Gov. Andrew Cuomo said Sunday the state is “past the high point” of new cases, noting the infection rate has fallen along with
In Washington, Treasury Secretary Steven Mnuchin said the administration and Congress were close to striking a deal on a second round of loans for small businesses. A $349 billion rescue loan program ran out of money on Thursday.
“While nobody should be under the illusion that the virus will be eradicated soon, it is important to the equity markets that we have gone through most of the known ‘rolling apexes,’ through mitigation measures,” Jen said.
But while the market may be pricing in an improvement in the virus outbreak, recent economic data has been dismal. Over the past month, 22 million jobs have been lost, weekly unemployment claims numbers from the Labor Department showed.
The number of