Dow Futures Point to Rebound after Concerns of 2nd Wave and Bad Economy Plunge the Market

Dow Jones Futures pointed to rebound on Friday after a huge slump in the previous session over concerns of a second virus outbreak and the slow economic recovery.

 

As of 14:13 local time in Thailand (GMT+7), Dow Jones Futures rebounded 253 points or 1.01% to 25,418 points. S&P 500 Futures gained 0.94% and Nasdaq Futures advanced 0.83%. VIX Futures fell 10.77% to 36.25 points as the market expected to recover from the loss.

 

Overnight, Dow Jones dropped 1,861.82 points or 6.9% to close at 25,128.17 points, while S&P 500 fell 5.89% and Nasdaq saw a 5.27% drop after reaching its all-time high in the previous session.

The retreat in Wall Street came after the Fed’s Chairman Jerome Powell affirmed of maintaining the policy rates at 0-0.25% through 2022 and forecasted a 6.5% contraction in the U.S. economy in 2020, raising concerns of the slow economic recovery in the U.S. Moreover, the U.S. coronavirus cases just surpassed 2 million with 112,834 deaths, holding the record of most infections and deaths in the world. Meanwhile, 18 states in the U.S. are seeing an uptick of new cases, causing concerns of the second wave amid mass protest in the nation.