WASHINGTON (dpa-AFX) - After the Dow entered bear market territory for the first since the 2008 financial crisis in the previous session, stocks are likely to see further downside in early trading on Thursday.
The major index futures are currently pointing to a sharply lower open for the markets, with futures trading halted earlier this morning as the index futures tumbled by more than 5 percent.
Concerns about the impact of the coronavirus are likely to continue to weigh on the markets after President Donald Trump addressed the nation about the outbreak last night.
Trump was likely seeking to calm the markets but has instead exacerbated concerns by announcing a ban on all travel from Europe to the U.S. for the next 30 days.
The president's remarks also created some confusion, as he initially said the prohibitions would apply to trade and cargo before subsequently tweeting that trade 'will in no way be affected.'
Trump also announced plans to address the economic impact of the outbreak, although some investors have complained about a lack of specifics.
Reflecting the widespread impact of the outbreak, the NBA has suspended its season after an all-star player tested positive for the coronavirus.
Oscar-winning actor Tom Hanks revealed that he and his wife, actress Rita Wilson, have also tested positive in Australia.
The coronavirus concerns are likely to overshadow the day's economic data, including a report from the Labor Department showing an unexpected drop in initial jobless claims in the week ended March 7th.
A separate report from the Labor Department showed producer prices declined by much more than expected in the month of February amid a steep drop in energy prices.
Stocks moved sharply lower during trading on Wednesday, resuming their downward trajectory following the notable rebound on Tuesday. With the steep drop on the day, the major averages largely offset Tuesday's strong gains.
The major averages climbed off their lows of the session going into the close, but the Dow and the S&P 500 still ended the day at their worst closing levels in over a year.
The Dow plunged 1,464.94 points or 5.9 percent to 23,553.22, with the blue chip index entering bear market territory as it closed down more than 20 percent from its record high last month.
The Nasdaq plummeted 392.20 points or 4.7 percent to 7,952.05 and the S&P 500 tumbled 140.85 points or 4.9 percent to 2,741.38.
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