U.S. stock futures slid early Wednesday, suggesting more volatility when trading begins Wednesday, following two roller-coaster days on Wall Street.
What are the major indexes doing?
Dow Jones Industrial Average futures YMH20, -2.23% were last down around 700 points, or 2.8%. S&P 500 futures ESH20, -2.33% and Nasdaq-100 futures NQH20, -2.24% were also down close to 3%.
On Tuesday, the Dow Jones Industrial Average DJIA, +4.89% rose 1,167.14 points, or 4.9%, at 25,105.14, while the S&P 500 SPX, +4.94% gained 135.67 points, or 4.9% to close at 2,882.23. The Nasdaq Composite Index COMP, +4.95% jumped 393.58 points, or 5%, to 8,344.25.
See: Dow gains nearly 1,200 points after worst day since 2008 crisis
That came a day after Monday’s selloff, when stocks fell the most in one day since the 2008 financial crisis.
What’s driving the market?
Stocks rallied during regular trading Tuesday after President Donald Trump called for payroll-tax relief and other measures to help businesses deal with the economic slowdown resulting from the coronavirus epidemic. But lawmakers in both parties expressed skepticism about a payroll-tax cut to bolster the economy.
Markets are also pricing in an easing of monetary policy from the European Central Bank at its Thursday meeting and similar measures from the U.S. Federal Reserve at next week’s policy meeting.
Read: Why a curiously strong euro is another reason for the ECB to act this week
What are analysts saying?
Joe Kalish, chief global macro strategist at Ned Davis Research, said Trump’s payroll-tax plan was not enough.
“We need to see meaningful support for economic activity and credit backstops, especially for small businesses, not a targeted approach executed only by the executive branch,” he said Tuesday in a note. “We will likely need congressional involvement. This is a potential solvency problem.”
What are other markets doing?
After plummeting 25% Monday, crude oil prices recovered somewhat during Tuesday trading, but those gains were less pronounced early Wednesday. West Texas Intermediate crude for April delivery CLJ20, -1.98% rose 0.8% to $ 34.63 a barrel, while May Brent crude BRNK20, -1.48% , the global benchmark, gained 2.2% to $ 38.09 a barrel.
Asian markets were led lower by a more than 3% drop for stocks in Australia XJO, -3.60% and South Korea 180721, -2.78% , while Japan’s Nikkei NIK, -2.27% was down nearly 2%.
