U.S. stock futures rebounded as investors took solace in emergency stimulus by China’s government, speculating it would calm two weeks of volatility in global markets spurred by the coronavirus outbreak.
Over the weekend, China’s central bank said it will supply a net $21.7 billion to money markets while advising banks to lend more in an effort to limit the market influence of coronavirus, which has killed more than 300 people in the country and infected over 14,000.
Anxiety the outbreak will lay low an already fragile global economy has shattered four months of tranquility in U.S. stocks, doubling and tripling the size of daily swings in the S&P 500 and drowning out a solid earnings season. Stellar results from Apple Inc., and Amazon.com Inc. last week could do nothing to cushion markets and equities ended with back-to-back weekly losses for the first time since October.
Trader Georgi Bozhidarov