(Bloomberg) -- U.S. stock index futures extended losses as worsening figures for coronavirus cases in the U.S. and bleak projections for the spread led to renewed worries for investors.
S&P 500 Index futures expiring in June fell 3% as of 9 a.m. in London, while contracts dropped 2.4% on the Nasdaq 100 Index and slid 3% on the Dow.
In Europe, Stoxx 600 Index also lost 3%, kicking off the new quarter in negative territory, with banks leading the decline. HSBC Holdings Plc tumbled 8.4% as several U.K. lenders agreed to scrap dividends and buybacks this year after the country’s regulator pushed them to contain the shareholder payouts amid the pandemic.
On Tuesday, investors focused on signs that Congress could deliver a fourth round of stimulus as the virus spreads deeper in the country. President Donald Trump is reportedly seeking a $2 trillion infrastructure package.
Investors are at a crossroads, questioning whether extraordinary stimulus by countries and central banks can counter further retrenchment of firms and consumers as the outbreak spreads.
Trump warned of a “painful” two weeks ahead. As many as 200,000 Americans are projected to die in the outbreak, said Deborah Birx, the top public-health official coordinating the White House coronavirus task force.
“I’m not surprised the market is down, we’ve had a tremendous amount of volatility. Part of that is fear driven, investors just wanting to go to cash at any price,” said Bob Tull, president of Procure Holdings. “ There’s been no positive news globally about containment of the virus.”
New York cases surged by more than 9,000, with more than 300 new deaths. The state’s infections now exceed those reported in China’s Hubei province, where the virus began.
“The attitude is still fearful but off the extreme levels of fear we saw early last week,” said Dan Russo, chief market strategist at Chaikin Analytics. “People are discounting what they think could be the worse case scenarios.”
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