After global economic fallout and a financial market that has collapsed in the first quarter due to the Coronavirus outbreak, the U.S stock futures jumped after a rise in the oil prices. The hefty loss incurred by the energy industry has already been an issue of concern.
Amidst a terrible first quarter of 2020, and a worse second quarter beginning, the Dow futures were up by 350 points, with the S&P 500 and Nasdaq Composite being set to open higher.
The Coronavirus outbreak had sent the global economy tumbling, with the worst Dow and S&P 500 performances in the first quarter. Dow fell by 23%, in the first quarter and S&P 500 by 20%, closing their worst first-quarter performances of all time, on Tuesday.
Market braces for huge jobless claims in the U.S.
Analysts and economists expect another 4 to 5 million workers to file for unemployment claims in the U.S. due to the nationwide shutdown in the country due to the coronavirus outbreak. The estimated range can be as high as 9 million. In the previous week, the unemployment claims hit a record high at 3.3 million. Even more claims, in millions, are yet to arrive in the upcoming weeks, and with the shutdown and employee layoff by several companies, the number is only set to rise, as people in the financial crisis rise subsequently.
Oil prices rise by 10% boosting energy stocks
As the oil prices rose by 10%, energy stocks were boosted in premarket trading on Thursday. Exxon Mobil and Chevron each gained more than 6%, while Occidental Petroleum and Apache jumped by more than 10%.
After a possible end to a price war between Saudi Arabia and Russia, the biggest cause of pain to the crude market, the situation might be a little manageable. Although the crude market has slightly recovered, with the U.S. oil prices slightly above $22, WTI crude rose by 9.4% to $22.22 per barrel and Brent crude rose by 9.9% to $27.19.
With an unprecedented demand slowdown, the oil market has incurred huge losses leading investors to sell their other assets to cover their losses in the oil. Oil has a huge impact on other financial markets, and the U.S. shale industry, which is a big player in the economy and employment.
The rise in stock futures, oil prices and the volatility of the April market amidst the coronavirus situation, is being closely watched by investors.