After a not so exciting overnight trading, the US Stock market futures point to slight losses as the market open on this Thursday. According to futures, DOW is all set to lose 100 points when it opens while Nasdaq and S&P 500 also hint at marginal losses for them respectively. The market sentiment shifted gears to being pessimistic once again after gains on Tuesday.
On Wednesday, the bloodbath in Wall Street began once again after a slight respite on Tuesday. The DOW fell by 6.3% or 1338.46 points to end the day below 20000 points and this is the first time since February 2017 that the index has gone below 20000 points. The S&P 500 index also slipped 5.2% below and this has truly brought them further deeper into the bear market.
On Wednesday evening, futures took a leap after the European Central Bank announced a pandemic emergency purchase program that is supposed to deploy €750 billion to support the European market from suffering in this sorry state of the economy. The central bank further announced that the purchases will continue until the end of this year and will also include government debts.
All the sectors of the economy need to benefit from this support from ECB and they reportedly said that they will take special care of this. The council will do all that can be done in order to boost the economy of the state. This support came after just a day or two after its US counterpart, Federal Reserve, announced funds for the country’s failing economy.
The New York Stock exchange announced that is historic trading floor will be closed for the time being and all the trading will be handled digitally. This is in light of the fear of coronavirus and as a safety measure to prevent gatherings. Two people have been tested positive for the screening which is why all proceedings will resume on the floor after March 23rd. The $1 trillion package from the White House will surely have positive effects on the significant indexes. It is only about time that the spread of this virus will significantly reduce and then the market will start healing the deep wounds incurred in this bear market period. The paid leave and unemployment benefit from the government has really helped the citizens to stay indoors. The roller coaster ride for the stock market is here to stay at least for this time unless there is any certainty regarding coronavirus’ fate.