U.S. stock futures pointed to an over 1,300-point plunge for the Dow Jones Industrial Average at Monday's open as oil prices and bond yields were collapsing. Crude futures plunged after OPEC's production-cut deal failed and the 10-year Treasury yield made shocking new lows in a global flight to the perceived safety of bonds. Wall Street stock futures hit the "limit down" 5% early Monday, meaning Dow futures can't trade below 1,255 points. Any spark of optimism, seen when the Dow cut major losses in the final 10 minutes of trading Friday, was no where to be seen Monday.
The 10-year Treasury yield, which moves inversely to price, dropped to a new record low of 0.318% early Monday. The 30-year Treasury yield broke below 1% for the first time in history, hitting a record low of 0.702%. The yields on the 30-year and 10-year were a bit off their lows. The Federal Reserve's emergency, intermeeting 0.5% interest rate cut last week has done little to support stocks and yields. The Fed's regularly scheduled March policy meeting is next week.
Oil prices were off about 20% on Monday morning, though they had been 30% lower overnight. OPEC's failure to strike a deal with its allies regarding production cuts last week led Saudi Arabia to reduce its prices as the kingdom reportedly gets set to ramp up production, leading to fears of an all-out price war. OPEC ally Russia rejected the additional cuts when the 14-member cartel and its allies, known as OPEC+, met Friday.
U.S. coronavirus cases spiked over the weekend, reaching 564 with 22 deaths, according to Johns Hopkins University. Over 100 people in New York — most in Westchester County — tested positive. Officials in Oakland, California, are preparing to receive thousands of people from a cruise ship that has been idling off San Francisco with at least 21 people aboard infected with the coronavirus. California and Washington state have the highest numbers of U.S. cases.
Global coronavirus cases numbered nearly 107,000 with more than 3,600 deaths, according to the World Health Organization. In one of the biggest hot spots outside China, which still has most of the cases and where the virus originated in December, Italy announced a sweeping quarantine Sunday. The Italian government imposed restrictions on the movement of about a quarter of that country's population in a bid to contain the outbreak.