Futures tied to the Dow Jones Industrial Average wavered between gains and losses before advancing 1% this morning.
The gauge for blue-chip stocks had plummeted nearly 3,000 points Monday over fears that the pandemic was disrupting supply chains and sidelining workers after infecting tens of thousands of people.
A closely watched measure of turbulence in U.S. stocks, the Cboe Volatility Index, neared its highest level in two years Tuesday, suggesting that any advances after the opening bell may be short lived.
The focus for many investors is now on fresh data showing the pandemic’s spread and damage, as well as policy measures that are likely to be taken to counter the economic fallout, said Esty Dwek, head of global market strategy at Natixis Investment Managers.
“The markets just don’t know how negative an economic scenario they need to price in,” said Ms. Dwek. “For some people, an economic recession is a foregone conclusion, and how deep the recession will be is the question.”
Some economists have said U.S. households, businesses and investors should brace for a sharp downturn in the first half of 2020, and hope for a bounce back during the last six months of the year. A contraction in U.S. economic activity would mean global recession. Others have said the fallout from the fast-moving health crisis is hard to predict.
“We have no idea whatsoever how this is going to turn out, economically, socially,” said Peter Dixon, an economist at Commerzbank. “The real focus is what support are governments going to give cash-strapped businesses to get them through the remainder of this year.”
https://www.wsj.com/articles/u-s-futures-rise-as-asia-markets-gyrate-11584413763?mod=cxrecs_join#cxrecs_s
The gauge for blue-chip stocks had plummeted nearly 3,000 points Monday over fears that the pandemic was disrupting supply chains and sidelining workers after infecting tens of thousands of people.
A closely watched measure of turbulence in U.S. stocks, the Cboe Volatility Index, neared its highest level in two years Tuesday, suggesting that any advances after the opening bell may be short lived.
The focus for many investors is now on fresh data showing the pandemic’s spread and damage, as well as policy measures that are likely to be taken to counter the economic fallout, said Esty Dwek, head of global market strategy at Natixis Investment Managers.
“The markets just don’t know how negative an economic scenario they need to price in,” said Ms. Dwek. “For some people, an economic recession is a foregone conclusion, and how deep the recession will be is the question.”
Some economists have said U.S. households, businesses and investors should brace for a sharp downturn in the first half of 2020, and hope for a bounce back during the last six months of the year. A contraction in U.S. economic activity would mean global recession. Others have said the fallout from the fast-moving health crisis is hard to predict.
“We have no idea whatsoever how this is going to turn out, economically, socially,” said Peter Dixon, an economist at Commerzbank. “The real focus is what support are governments going to give cash-strapped businesses to get them through the remainder of this year.”
https://www.wsj.com/articles/u-s-futures-rise-as-asia-markets-gyrate-11584413763?mod=cxrecs_join#cxrecs_s
