Dow futures drop 500, waiting on jobs data, ECB stimulus, oil rebounds

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Traders work on the floor at the New York Stock Exchange October 31, 2019.

Brendan McDermid | Reuters

This is a live blog. Check back for updates.

8:21 am: US dollar jumps to multi-year high

As the coronavirus outbreak continues to send jitters through the market, the dollar index jumped to 102.329, its highest level since Jan. 11, 2017 as investors look to have cash on hand. —Francolla, Stevens

8:18 am: Bank of America says the recession is already here: ‘Jobs will be lost, wealth will be destroyed’

Bank of America warned investors on Thursday that a coronavirus-induced recession is no longer avoidable — it’s already here. “We are officially declaring that the economy has fallen into a recession … joining the rest of the world, and it is a deep plunge,” Bank of America U.S. economist Michelle Meyer wrote in a note. “Jobs will be lost, wealth will be destroyed and confidence depressed.” The firm expects the economy to “collapse” in the second quarter, shrinking by 12%. For 2020, the firm expects GDP to contract by 0.8%. —Stevens

8:05 am: Hotel stocks slammed in premarket trading

Hilton and Marriott shares are poised for another brutal day, with both stocks falling more than 10% in premarket trading after posting double-digit declines on Wednesday. Hotels and other tourism companies are pushing for more than $100 billion in relief from the federal government due to the hit their business has taken from the pandemic. Pershing Square Capital Management CEO Bill Ackman said on Wednesday that every major hotel stock would go to zero without significant government action, but that he is still buying Hilton shares. —Pound

7:50 am: Markets will be watching claims data for coronavirus fallout

Investors will be closely watching this morning’s jobless claims report, which could provide a first glimpse into the economic damage that the coronavirus is causing. However, the real picture probably won’t emerge until next week. Jobless claims for the week ended March 14 will come at 8:30, with economists surveyed by Dow Jones expecting a reading of 220,000, which would be up only slightly from last week’s 211,000. Companies, however, have just started what is expected to be an aggressive round of layoffs due to the slump in demand that the virus is causing. —Cox

7:47 am: Oil prices rebound after falling to 18-year lows 

Oil prices bounced back on Thursday, one day after dropping to their lowest level in 18 years. U.S. West Texas Intermediate crude jumped 10% to $22.43, while international benchmark Brent crude gained 4.6%. The relief rally comes one day after WTI fell 24.4% for its third worst day on record. Oil is getting hit on both the supply and demand side. The coronavirus outbreak and subsequent travel slowdown has led to soft demand for crude, while the market is set to be flooded with more oil beginning in April as OPEC+ nations increase their output in a fight for global market share. —Stevens

7:46 am: ECB announces massive stimulus package

The European Central Bank on Wednesday announced a new “Pandemic Emergency Purchase Program” that will use 750 billion euros to purchase securities to help support the European economy. “The ECB will ensure that all sectors of the economy can benefit from supportive financing conditions that enable them to absorb this shock,” the central bank said in a release. “This applies equally to families, firms, banks and governments. The Governing Council will do everything necessary within its mandate.” —Li

7:44 am: Stock futures point to more pain on Wall Street

With reporting from Jeff Cox, Jesse Pound and Gina Francolla. 

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