Stock futures plummet after Trump announces travel ban

It looks like markets are in for another rough ride Thursday.


It looks like markets are in for another rough ride Thursday.

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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