Following the pullback seen in the previous session, stocks are likely to see further downside in early trading on Tuesday. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 495 points.
Continued concerns about yesterday’s historic nosedive by crude oil prices may weigh on Wall Street amid worries about the impact on the already hard hit U.S. energy industry.
The price of crude oil for May delivery has shown a notable rebound but remains negative after plummeting below zero for the first time ever on Monday.
The May contract for crude oil, which expires on Tuesday, is currently trading at negative $4.70 a barrel, up $32.93 from yesterday’s close of negative $37.63 a barrel.
Meanwhile, the much more actively June contract is extending the sell-off seen in the previous session, dropping below $15 a barrel at its lows.
Lingering concerns about the ongoing coronavirus pandemic may also generate some negative sentiment, with President Donald Trump revealing plans to suspend immigration in the U.S. as a result of the outbreak.
“In light of the attack from the Invisible Enemy, as well as the need to protect the jobs of our GREAT American Citizens, I will be signing an Executive Order to temporarily suspend immigration into the United States!” Trump said in a post on Twitter on Monday.
Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of March.
Economists expect existing home sales to plunge by 8.1 percent to an annual rate of 5.30 million in March after spiking by 6.5 percent to a rate of 5.77 million in February.
Stocks moved mostly lower over the course of the trading session on Monday partly offsetting the strong gains posted last week. The major averages all finished the day firmly in negative territory.
The Dow plunged 592.05 points or 2.4 percent to 23,650.44, the Nasdaq slumped 89.41 points or 1 percent to 8,560.73 and the S&P 500 tumbled 51.40 points or 1.8 percent to 2,823.16.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index plummeted by 2 percent, while China’s Shanghai Composite Index slid by 0.9 percent.
The major European markets have also shown significant moves to the downside on the day. While the German DAX Index has nosedived by 3.2 percent, the French CAC 40 Index is down by 2.9 percent and the U.K.’s FTSE 100 Index is down by 2.1 percent.
In commodities trading, crude oil for June delivery is plummeting $4.30 to $16.13 a barrel after plunging $4.60 to $20.43 a barrel on Monday. Meanwhile, after climbing $12.40 to $1,711.20 an ounce in the previous session, gold futures are tumbling $29.40 to $1,681.80 an ounce.
On the currency front, the U.S. dollar is trading at 107.46 yen compared to the 107.62 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0830 compared to yesterday’s $1.0862.
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