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US STOCKS-U.S. futures fall in choppy trade as stimulus measures in focus

Published 02/03/2020, 13:35
Updated 02/03/2020, 13:36
© Reuters.  US STOCKS-U.S. futures fall in choppy trade as stimulus measures in focus
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Futures down: Dow 0.64%, S&P 0.89%, Nasdaq 0.39%

By Ambar Warrick

March 2 (Reuters) - U.S. stock index futures fell in

volatile trading on Monday, as investors weighed the efficacy of

interest rate cuts amid growing evidence of the economic impact

of the coronavirus outbreak.

Wall Street recorded its biggest weekly decline since the

2008 financial crisis on Friday amid rampant fears of a

recession resulting from the epidemic, which has now infected

around 86,000 people and killed more than 3,000.

Latest data from China showed factory activity in February

contracted at its sharpest pace on record, underlining the

impact on the world's second biggest economy from drastic travel

curbs and other public health measures. The figures prompted reassurances from the U.S. Federal

Reserve and the Bank of Japan to intervene with monetary

stimulus, if needed, sparking hopes of a coordinated effort by

central banks to inject liquidity and shore up growth.

Investors now expect the Fed to deliver a 50 basis points

rate cut 0#FF: when it meets on March 17-18. USD/

Financial markets are also awaiting final readings of the

U.S. Markit and ISM manufacturing indexes to gauge the health of

the domestic economy.

Flash readings of the indexes last month showed business

activity in both the manufacturing and services sectors stalled

in February. At 7:22 a.m. ET, Dow e-minis 1YMcv1 were down 163 points,

or 0.64%. S&P 500 e-minis EScv1 were down 26.25 points, or

0.89% and Nasdaq 100 e-minis NQcv1 were down 33 points, or

0.39%.

Wall Street's fear gauge .VIX jumped around 6%.

Cruise operator Carnival Corp CCL.N fell 8.1% in premarket

trading as the travel and leisure sector continued to reel under

disruptions caused by the virus outbreak.

Peers Royal Caribbean Cruises Ltd RCL.N and Norwegian

Cruise Line Holdings Ltd NCLH.N dropped about 3.6% and 6%,

respectively.

Airline stocks were further pressured by a jump in oil

prices, which rose on hopes of a deeper output cut. O/R

Delta Air Lines DAL.N and American Airlines Group Inc

AAL.O dipped about 1.8% each.

Major banks fell as increased bets on a rate cut prompted a

drop in bond yields. JPMorgan Chase & Co JPM.N , Citigroup

C.N and Wells Fargo & Co WFC.N fell between 1.4% and 2%.

In a bright spot, China's JD.com Inc JD.O rose 4.9% after

it forecast at least a 10% rise in revenue for the first

quarter, after posting better-than-expected quarterly results.

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