Limit-Down Trading in U.S. Stock Futures Points to Rough Open
- Saudi Arabia ignites price war in oil with output increase
- Virus cases mount in America with death toll rising globally
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American stock futures tumbled, with the losses triggering exchange rules that limit declines at 5%, as plummeting oil prices added to the backdrop of dread surrounding the coronavirus.
The drop easily erased the rally that lifted cash equities in the final hour of trading on Friday, as crude sank more than 20% in the deepest rout since the U.S.-led war in Iraq in 1991. While energy and commodity stocks only make up about 5% of the S&P 500, plunging crude prices exacerbated the blow to sentiment and stood as one of the starker signals of the outbreak’s economic toll.