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Stock futures plummet after Trump announces travel ban

Dow futures tumbled 1,000 points late Wednesday after President Trump said in a nationally televised address that all travel from Europe to the U.S. is banned for 30 days to limit the spread of the coronavirus.

Standard & Poor’s 500 futures fell 3.5%. The drops in pre-market trading likely heralded more turmoil for markets Thursday.

The speech came amid a cascade of negative headlines late Wednesday. The NBA canceled its season after a player tested positive for coronavirus, and just hours earlier, the Dow Jones industrial average ended its historic 11-year bull run on Wednesday by falling into a bear market.

The travel restriction is likely to further hammer the earnings of battered airlines and hotel companies and hurt consumer spending, which makes up 70% of the economy, says Ryan Dietrich, senior market strategist at LPL Financial.

“It sure seems like to travel ban was a drastic measure that caught even the overall market off-guard,” Detrick says.

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