Stock market futures plummet despite Fed intervention

(NEW YORK) — Futures on U.S. financial markets plunged early Monday, even after the Federal Reserve said it was slashing rates as the novel coronavirus outbreak continues to upend business and travel across the world.

Futures on the Dow Jones Industrial Average and the S&P 500 both fell approximately 5% Sunday night, triggering a “limit-down” halt in trading.

Dow futures indicated an opening drop of more than 1,000 points. Futures on the S&P and Nasdaq 100 were also at their downside limits.

The major sell-off comes even after the Fed made a surprise announcement on Sunday that it’s slashing interest rates to near zero and spending $700 billion to buy Treasury and mortgage bonds to help buoy the economy during the coronavirus pandemic.

The intervention did not appear to be enough to quell any investors’ worries about the economic impacts of the outbreak on businesses. Local governments including in New York and Los Angeles announced over the weekend they were shuttering businesses such as bars and entertainment venues.

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