US Stock Futures Drop Following Gains in Previous Session

US Stock Futures Drop Following Gains in Previous Session

Treasuries and the dollar retreated. With the outbreak sowing chaos across the world, investors have been lost in a fog when it comes to corporate earnings.

Goldman Sachs Group Inc also set aside almost $1 billion to meet future loan defaults, while Citigroup Inc's loan loss reserve grew to almost $5 billion.

The S&P energy sector slumped 7.3% and was on track for its worst day in almost a month as oil prices sank after reports suggested persistent oversupply and collapsing global demand. Hong Kong shares were little changed after reopening from a holiday. Treasuries rose, the USA dollar retreated against its major peers and oil tumbled.

Analysts expect earnings for S&P 500 firms to slide 12.8% in the first quarter, while the International Monetary Fund has predicted the global economy would this year witness its sharpest slump since the 1930s. Currencies of commodity producers, including Russia's ruble, Australia's dollar and Norway's krone weakened.

It appears that, in the first quarter where the industry's results have been impacted by the coronavirus pandemic, Goldman Sachs is showing it may be slightly more insulated from the turmoil facing its bigger peers.

"When you look at the facts, I think there's reason to be more hopeful than we have been", CNBC's Jim Cramer said.

Stock Index ETFs are following equity markets higher as well, with the SPDR S&P 500 ETF Trust (SPY) climbing 2.52%, the SPDR Dow Jones Industrial Average ETF (DIA) rallying 2.27%, and the Invesco QQQ Trust (QQQ) leading the other stock index ETFs with a 3.93% move higher.

"Earnings and coronavirus are tightly intertwined and the more progress there is on coronavirus, the sooner economic activity resumes and earnings rebound". NY time.The MSCI Asia Pacific Index fell 0.3%.The MSCI Emerging Market Index declined 0.5%.

The Bloomberg Dollar Spot Index fell 0.1%.The euro rose 0.1% to $1.0923.The Japanese yen appreciated 0.2% to 107.61 per dollar.

The yield on 10-year Treasuries dipped six basis points to 0.69%.Germany's 10-year yield decreased eight basis points to -0.45%.Britain's 10-year yield fell three basis points to 0.313%.

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