Stocks on Wall Street plunged Monday, but futures trading suggests a rebound — or a least a respite — on Tuesday.
Dow Jones Industrial Average futures
rose more than 200 points on Tuesday, while S&P 500 futures
gained 0.8% and Nasdaq Composite futures
added more than 1%
A pause or bounce-back would not be unusual. The past 10 times that the S&P 500 index fell by as much as 3%, for example, it declined just 0.27%, on average, in the next trading session, according to Dow Jones Market Data.
Researchers at Bespoke Investment Group also said Monday that, over the past 11 years, declines of more than 2% for the S&P 500 have tended to see healthy rebounds, particularly when that daily slide happens on a Monday. “Since March 2009, there have been 18 prior 2%+ drops on Mondays, and SPY has seen an average gain of 1.02% on the next day (Turnaround Tuesday),” they wrote.
Crude oil prices, which tumbled 5% Monday, ticked up in electronic trading, with West Texas Intermediate crude for April delivery
and April Brent crude
, the global benchmark, each up around 0.5%.
Gold prices
, which jumped 1.7% Monday to their highest point in seven years, slipped 1.5% to $1.651.80.
Asian markets continued to fall, with Japan’s Nikkei
— which was closed for a holiday Monday — last down over 3%. Australia’s S&P/ASX 200
fell 1.6%, though South Korea’s Kospi
, which fell 4% on Monday, rebounded 1.1% on Tuesday.
Monday on Wall Street, the Dow finished more than 1,000 points lower, marking its third-worst daily point drop in history, as the global spread of the coronavirus raised worries that the impact on economic growth could be worse than investors expected, hurting the prospects for a global recovery in 2020.
The Dow Jones Industrial Average
shed 1,031.60 points, or 3.6%, to settle at 27,960.80. The S&P 500
slumped 111.86 points, or 3.4%, to close at 3,225.89, and the Nasdaq Composite
off by 355.31 points, or 3.7%, to finish at 9,221.28.
