The United States futures options tanked in early Monday's trading, suggesting yet another difficult week for stocks in the country in the wake of the novel coronavirus (COVID-19) outbreak. The dollar, too, fell against safe-haven currencies and gold.
The U.S. Federal Reserve on Sunday slashed the interest rate to zero for the first time since the global financial crisis of 2008.
The move followed the Fed's earlier announcement on Thursday, where the federal agency said it would provide up to $1.5 million in loans to support financial market liquidity.
Invesco chief economist John Greenwood and Johns Hopkins University professor of applied economics Steve Hanke noted for the Wall Street Journal last week that the economy was in good shape ahead of the outbreak. The Fed needs to influx liquidity into the market, and rate cuts are unlikely to help, they said.
The number of coronavirus cases rose to 3,744 in the U.S. over the weekend, including 69 deaths, according to data from Johns Hopkins University. The virus has also spread fast in Western Europe, with globally tally increasing to 169,387. At least 6,513 people have been confirmed dead from COVID-19.
President Donald Trump declared a national emergency on Friday to combat the spread of the coronavirus. Trump added that the government is working with Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) on developing a triage program to decide which people are in need of getting tested first.
S&P 500 futures traded 4.77% lower at 2,567.50 at press time on Monday. Dow Jones futures lost 1,041 points at 21,947. Nasdaq 100 futures were down 4.54% at 7,556.
The U.S. dollar fell 1.34% against the Japanese yen at 106.47. It fell 0.45% against the Swiss franc at 0.95.
Spot Gold gained 1.12% against the dollar at $1,533.75. Oil dropped again, with West Texas Intermediate futures trading 3.6% lower at $30.94 a barrel.