Dow Futures Fluctuate as Wall Street Attempts Recovery After Epic Rout

By Noreen Burke

Investing.com – Dow futures fluctuated between gains and losses on Wednesday as Wall Street attempted to struggle back after an epic two-day selloff on the back of concerns over the global economic impact of coronavirus.

By around 06:50 AM ET (1150 GMT) were up 14 points, reversing course after dropping around 160 points earlier. and rose 0.2% and 0.3%, respectively.

The tumbled 3.1% on Tuesday, bringing its two-day loss to more than 1,900 points after finishing Monday down nearly 880 points.

The and the also finished sharply lower Tuesday, while hit a record low amid a broad-based flight to safety on concerns about the global economic impact of the outbreak.

Late on Tuesday, the U.S. Centers for Disease Control and Prevention alerted Americans to begin preparing for a likely pandemic.

Fears of a pandemic escalated on Wednesday after Asia reported hundreds of new cases, including the first U.S. soldier to be infected and outbreaks in Italy and Iran spread to other countries.

Although the disease is believed to have peaked in China, where it first originated late last year, the resulting hit to factory output and consumer spending have threatened global economic growth in 2020.

“The market’s realizing that though the pace of the infections looked like it was slowing, it’s still spreading globally,” said Shawn Cruz, manager of trader strategy at TD Ameritrade in Jersey City, New Jersey.

While investors had hoped the economic impact of the virus would be contained to the first quarter, Cruz said many are now estimating that “it’s going to have an impact on the first half of 2020 and probably beyond.”

–Reuters contributed to this report

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