Dow futures on Wednesday were pointing to an opening loss that would give back much of Tuesday's 1,100-point snap-back rally. The Dow Jones Industrial Average tanked over 2,000 points or nearly 7.8% on Monday after last week's wild swings on coronavirus concerns. As of Tuesday's close, the Dow was down 15% from last month's record highs, well below correction levels of at least 10% down from recent 52-week highs. Following a similar move last week by the U.S. Federal Reserve, the Bank of England announced Wednesday an emergency interest rate cut in an attempt to limit the economic damage in the U.K. from the coronavirus.
Bond yields, which move inversely to prices, were moving lower Wednesday. The 10-year Treasury yield edged back below 0.7% in early trading after Monday's incredible record low just above 0.3%. Mortgage rates followed yields lower, leading to a massive jump in borrowers applying to refinance their home loans. Refi applications rose a whopping 79% last week. Total mortgage application volume soared 55.4%. Besides bonds, gold as a safety trade pushed the metal on Monday slightly above $1,704 per ounce for highs back to late 2012. Gold fell Tuesday, but it was steady early Wednesday. Oil prices were lower Wednesday as Saudi Arabia boosted production after an OPEC-led proposed output cut fell apart last week when Russia would not come on board. Crude bounced 10% on Tuesday after tanking nearly 24.6% on Monday.
Coronavirus cases surpassed 1,000 in the United States, according to Johns Hopkins University data, with 29 deaths. Almost half of all U.S. cases are in Washington state, New York and California. President Donald Trump plans to meet Wednesday with Wall Street executives to discuss an economic response to the coronavirus fallout. Trump, in a meeting with Republican lawmakers Tuesday on Capitol Hill, pitched a 0% payroll tax rate for employers and employees that would last through the rest of this year, a White House official told CNBC.
Beijing said Wednesday all travelers to the city from overseas must self-quarantine for 14 days at home or in a hotel, regardless of whether their country of origin has been hit seriously by the coronavirus. The outbreak started in the Chinese city of Wuhan, more than 700 miles to the south of the capital. China still has the bulk of the case and the deaths. Global confirmed cases rose to nearly 121,000 with 4,368 deaths. More than half the people infected around the world have recovered.
Joe Biden will win Tuesday's Michigan primary, NBC News projected, in a crushing blow to his last serious Democratic presidential rival, Bernie Sanders. The Vermont senator failed to replicate the success he saw in Michigan during his upstart but unsuccessful 2016 bid for the Democratic nomination. The former vice president will also win in Mississippi, Missouri and Idaho, NBC News projects. Sanders will win North Dakota. Washington state was still too early to call. Biden leads the delegate count over Sanders — 837 to 689.