The Dow Jones Industrial Average is set to sink more than 400 points at Wall Street's open on Monday. U.S. stock futures were under severe pressure, following stock markets around the world lower, as China's coronavirus outbreak widens. On Friday, stocks had their worst day of 2020, which had gotten off to a roaring start after last year's near 29% gain for the S&P 500, the best annual performance for the index since 2013. Heading into Monday's trading, the Dow was on a four-session losing streak. Perceived safer investments such as bonds and gold were higher. Bond prices move inversely to yields, which were lower.
Chinese health officials are reporting more than 2,800 confirmed cases of the fast-spreading coronavirus in China and 81 deaths. It was first identified in the city of Wuhan in Hubei province last month. Johnson & Johnson's chief scientific officer, Dr. Paul Stoffels, told CNBC on Monday that he believes the drugmaker can create a vaccine in the coming months but it may not get to market for a year. Several companies, including Walt Disney with its Shanghai Disney, are suspending operations until further notice during the normally festive weeklong Lunar New Year holiday to prevent the outbreak from spreading. Starbucks and McDonald's closed stores in Hubei province.
Last week, billionaire investor Paul Tudor Jones warned that the "curveball" to derail the bull market in stocks could be the outbreak of the coronavirus. The hedge fund manager invoked "early 1999" as a touchstone for today's market environment, noting in particular the copious financial liquidity and low inflation energizing risk assets. However, as CNBC's Michael Santoli points out the Nasdaq 100, the heart of the market's leadership both now and then, currently fetches 28 times trailing earnings, compared with about 40 times two decades ago.
Democrats are stepping up their calls for former national security advisor John Bolton to testify at President Donald Trump's impeachment trial. This comes after an explosive report alleged that in Bolton's unpublished book he said Trump personally tied aid for Ukraine to an investigation of the Bidens. Trump in a tweet just after midnight denied saying that.
In a rare Saturday session in the Senate, Trump's legal team started to lay out its defense of the president at his impeachment trial. The president's defense continues Monday.
Sen. Elizabeth Warren is fighting to regain momentum in the 2020 Democratic presidential nomination race, with the Iowa caucuses set for next Monday. Warren, who received the coveted Des Moines Register endorsement, was in fourth place in Iowa, according to the RealClearPolitics polling average. Sen. Bernie Sanders leads in Iowa, followed by former Vice President Joe Biden and ex-Mayor Pete Buttigieg. Sanders also leads in New Hampshire, which holds its primary Feb. 11. Strong showings in Iowa and New Hampshire, which don't really have a huge number of delegates, can bring in money and media attention that can lead to later success.
— The Associated Press contributed to this report.