Intel stock spikes after report of possible US government stake
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* Futures plummet: Dow 4.87%, S&P 4.89%, Nasdaq 4.82%
By Medha Singh
March 9 (Reuters) - U.S. stock index futures plunged on
Monday after Saudi Arabia launched an oil price war with Russia,
sending crude tumbling 25% and intensifying fears about a global
recession.
The Dow Jones Industrials index .DJI was set to fall over
1,300 points at the open, with Chevron Corp CVX.N and Exxon
Mobil Corp XOM.N slumping about 12% in premarket trading. All
30 blue-chip components were in the red.
Futures contracts for all three main Wall Street indexes hit
a 5% daily down limit overnight.
Crude prices logged their worst day in almost three decades
as Saudi Arabia slashed its official selling price after Russia
refused to cut output to match lower demand on the back of the
coronavirus outbreak. O/R
The health crisis, which has now infected more than 110,000
people globally, has crippled supply chains and prompted cuts to
global growth forecasts for 2020. Traders are now expecting the Federal Reserve to again cut
interest rates next week after an emergency reduction on March
3, putting the yield on benchmark 10-year U.S. Treasury
US10YT=RR on course for its biggest one-day fall in almost a
decade. US/
Shares of rate-sensitive U.S. banks Citigroup Inc C.N ,
Bank of America Corp BAC.N , JPMorgan Chase & Co JPM.N ,
Goldman Sachs GS.N , Wells Fargo & Co WFC.N and Morgan
Stanley MS.N slid between 7.4% and 9.6%.
Marathon Oil Corp MRO.N , Devon Energy Corp DVN.N , Apache
Corp APA.N , Pioneer Natural Resources Co PXD.N slipped
between 22% and 28% and were some of the biggest losers among
S&P 500 components.
At 7:12 a.m. ET, Dow e-minis 1YMcv1 were down 1,255
points, or 4.87%. S&P 500 e-minis EScv1 were down 145 points,
or 4.89% and Nasdaq 100 e-minis NQcv1 were down 410 points, or
4.82%.