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* Futures down: Dow 2.28%, S&P 2.49%, Nasdaq 2.28%
(Adds details, updates prices)
By Medha Singh and Sanjana Shivdas
March 11 (Reuters) - U.S. stock index futures fell more than
2% on Wednesday after strong gains in the previous session, on
skepticism about President Donald Trump's stimulus plan to
combat the economic impact of the coronavirus epidemic.
Expectations that Trump would announce "major" stimulus
measures helped Wall Street rebound on Tuesday from a bruising
sell-off on Monday as a plunge in oil prices compounded fears of
a global recession.
While Trump met with fellow Republicans in the U.S. Senate
on Tuesday and discussed a payroll tax cut, no concrete measures
have been announced. The rapid spread of the virus has galvanized central banks
and governments to roll out measures to cushion its fallout. The
Bank of England on Wednesday became the latest central bank to
cut interest rates. MKTS/GLOB
Analysts now expect the U.S. Federal Reserve to cut rates
for the second time this month when it meets next week,
pressuring Treasury yields further. US/
Rate-sensitive U.S. lenders tumbled, with Citigroup Inc
C.N , JPMorgan Chase & Co JPM.N and Morgan Stanley MS.N
down between 2.2% and 3.7% in premarket trade.
At 7:27 a.m. ET, Dow e-minis 1YMcv1 were down 567 points,
or 2.28%. S&P 500 e-minis EScv1 were down 71.25 points, or
2.49%, and Nasdaq 100 e-minis NQcv1 were down 190 points, or
2.28%.
The three main stock indexes came within a hair's breadth of
confirming bear market territory, implying a drop of 20% from
record highs, on Monday. The benchmark S&P 500 .SPX is now
about 15% below its all-time high hit just three weeks earlier.
Nike NKE.N fell 3.7% after rivals Adidas ADSGn.DE and
Puma PUMG.DE flagged a sales hit in China due to the
coronavirus outbreak.
DXC Technology DXC.N soared 15.6% after the IT and
consulting services provider said it would sell its healthcare
technology business to private equity firm Veritas Capital for
$5 billion. On the economic front, the Labor Department's inflation
report for February is scheduled for 8:30 a.m. ET.
Futures also shrugged off Joe Biden rolling into commanding
victories in pivotal Michigan and two other states on Tuesday,
taking a big step toward the Democratic Party's presidential
nomination.