Stock market futures point to a stable open on Wall Street after yesterday’s wild session which saw the Dow Jones plunge 600 points before recovering.
The volatility subsided overnight as China stabilized the yuan and US Treasury yields recovered after plunging near all-time lows on Wednesday.
Dow Jones Industrial Average (DJIA) futures were flat at 25,955 in early trading Thursday. S&P 500 futures and Nasdaq Composite futures were equally steady at 7.10 am ET.
The US stock market went into panic mode earlier this week when China let the yuan fall beyond the crucial $7 mark, a move widely seen as retaliation to Trump’s threat of extended tariffs.
On Thursday, China brought some calm to the markets by stabilizing the yuan, fixing it at a more stable level than analysts predicted. At 7.0039, it’s still the weakest level in a decade against the dollar, but lower than the 7.0156 expected by Bloomberg’s poll.
Trade data out of China also came in better than expected, which likely bolstered the decision to stabilize the currency.
After a strong Asian session which saw the Shanghai Composite climb almost 1 percent, the US markets look set to hold steady. The move is also helped by Treasury note yields, which recovered from multi-year lows overnight.
Last modified: September 23, 2020 12:53 PM