Market sees no short-term solution to combat the virus, short at peak
US equity futures slid, and bonds rallied after the Federal Reserve slashed its benchmark to near zero, a sign that investors remain worried that the coronavirus will fuel a recession even with borrowing costs dropping.
slid over 1,040 points, or 4.6%, while dropped 4.8%, after earlier hitting a limit designed to stall further drops. S&P futures have hit the 5% limit down several times recently. Changes in futures don’t necessarily reflect moves after the opening bell and Sunday evening moves can be especially volatile.
In early Asian trading hours on Monday, the yield on the benchmark 10-year US Treasury note fell 0.32 percentage point to 0.64%, back to levels seen last Wednesday. Bond yields fall as prices rise. In regional stock markets, Australia’s benchmark retreated more than 4%, paring steeper early losses, while and South Korea’s Kospi were little changed.
The Bank of Japan said it would…