Stock market news live: Stock futures erase gains after $2 trillion stimulus deal reached

Stock market news live: Stock futures erase gains after $2 trillion stimulus deal reached

Stock futures rallied on Wednesday before losing steam after the White House and the Senate announced it reached a deal on a $2 trillion stimulus package designed to combat effects of the coronavirus.

The deal includes $1,200 checks to be sent to many Americans. It also reportedly includes $367 billion for small business, $50 billion specifically for passenger airlines, $8 billion for cargo airlines, and $17 billion “for firms that are deemed important to national security.”

The Senate is expected to vote on the bill later Wednesday before it goes to the House of Representatives and then to President Donald Trump.

Futures contracts on the S&P 500 and the Nasdaq were up 1.8% and 1.9%, respectively, at 5 a.m. ET. Dow futures were up 3.0%, boosted by Nike (NKE) shares which surged after the company announced better-than-expected quarterly results.

The damage — both economic and political — from COVID-19 has stoked a widening debate over how quickly the U.S. can return to a semblance of normalcy. With his re-election chances likely to be defined by a recovery from the crisis, President Donald Trump on Tuesday called for the economy to be restarted by April 12 — but market analysts have their doubts about that timetable.

Here's how long its taken stocks to go from record peaks to a correction.
Here’s how long its taken stocks to go from record peaks to a correction.

7:20 a.m. ET Wednesday: Stock futures erase earlier gains

Contracts on the three major indices hugged the flatline Wednesday morning as gains made after the White House and Senate said they reached a stimulus bill quickly faded away.

Here were the main moves in markets, as of 7:20 a.m. ET:

  • S&P 500 futures (ES=F): 2,425.00 down 13 points or 0.53%
  • Dow futures (YM=F): 20,730.00, up 112 points or 0.54%
  • Nasdaq futures (NQ=F): 7,531.25, down 23.50 points or 0.31%
  • Crude (CL=F): -$0.40 (-1.67%) to $23.61 a barrel
  • Gold (GC=F): -$16.20 (-0.98%) to $1,644.60 per ounce
  • 10-year Treasury (^TNX): +1.9 bps to yield 0.837%

7:00 a.m. ET Wednesday: Mortgage applications slumped by most since 2009 last week as outbreak undercuts home-buying

Weekly home-buying and home refinancing loan applications tumbled 29.4% for the week ending March 20, according to the Mortgage Bankers Association’s (MBA) weekly survey. This marked the largest drop since 2009, and accelerated declines after the prior week’s 8.4% drop.

Applications for home purchases fell 15% to the lowest level since August, and refinancing applications sank 34%.

States hardest hit by the coronavirus outbreak showed sharp drop-offs in home purchase applications, MBA data showed. California’s applications plunged 23% following a 3% rise last week, and New York’s applications fell 35% after a 24% drop the prior week. Washington state saw a 17% drop in purchase applications, extending declines of 3% for the prior week.

“Home purchase applications were notably impacted by rising rates and the widespread economic disruption and uncertainty over household employment and incomes,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

4:20 a.m. ET Wednesday: Stock futures rally

Futures rallied after the White House and the Senate announced that they reached a deal on a $2 trillion stimulus bill.

  • S&P 500 futures (ES=F): 2,457.75, up 19.75 points or 0.8%
  • Dow futures (YM=F): 20,996.00, up 388.00 points or 0.8%
  • Nasdaq futures (NQ=F): 7,612.25, up 57.50 points or 1.9%

6:02 p.m. ET Tuesday: Stock futures ease

Futures for each of the three major indices dipped Tuesday evening as investors awaited news of a completed stimulus bill in the face of the escalating domestic coronavirus outbreak.

Here were the main moves in markets, as of 6:02 p.m. ET:

  • S&P 500 futures (ES=F): down 3.50 points to 2,434.50
  • Dow futures (YM=F): up 10 points to 20,618.00
  • Nasdaq futures (NQ=F): down 27.75 points to 7,531.00

 

 

 

 

 

 

 

 

 

 

 

Emily McCormick, Javier E. David, and Nishant Mohan

 

https://finance.yahoo.com/news/stock-market-news-live-updates-march-25-2020-221501559.html

 

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