Stock Futures Got Crushed After the Senate Failed to Pass a Coronavirus Aid Package
7:31 p.m. The U.S. Senate failed to pass a trillion dollar aid bill to combat coronavirus, and stock futures have hit “limit down” as soon as they opened. Oh, and President Donald Trump just called in the National Guard.
Dow Jones Industrial Average futures have dropped 854 points, or 4.5%, while S&P 500 futures have slumped 4.9%, and Nasdaq Composite futures have fallen 4.4%.
The Senate has been working on a plan that was said to include payments to U.S. taxpayers, $50 billion in loan guarantees for airlines, $300 billion in loan guarantees to small businesses. It failed by a vote of 47 to 47—it needed 60 to pass—as Democrats and Republicans couldn’t agree on details about the size of the cash payments, the expansion of unemployment insurance, among other issues.
“Panic in the markets has led to an equivalent policy reaction that many have claimed to be the most extreme course of action ever taken by the Fed,” writes MRA’s John Kolovos in a note released Sunday. “Coupled with massive fiscal stimulus markets will eventually find their footing but I suspect that equities will have more work to do on the downside as this is all part of the process.”
https://www.barrons.com/articles/stock-futures-tumbles-as-stock-market-waits-for-senate-to-pass-carnivorous-aid-package-51584915365?siteid=yhoof2&yptr=yahoo
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