US Stocks, Dollar Decline After Trump Announces Suspension Of Travel From Europe

United States stock futures declined early Thursday morning after President Donald Trump suspended travel from Europe for 30 days.

What Happened

Futures markets reacted negatively to the news of the travel suspension with the Dow futures falling 5.15% to 22,360 and The S&P 500 futures sinking 4.90% to 2,606. Nasdaq futures fell 4.92% to 7,609.75 at press time.

The suspension of travel from Europe, which excludes the United Kingdom, was announced by Trump in an address to the nation on Wednesday. The imposition of this restriction is the latest in a series of measures taken to contain the spread of the coronavirus within the U.S. The travel ban is effective as of Friday.

The U.S. dollar took a hit falling 0.83% against the Japanese yen to 103.70, and the euro was unchanged at 1.1267. The Swiss franc, which is considered a safe haven, rose 0.31% against the greenback to 1.0680. 

Spot gold traded higher by 0.55% at 1,644.15, while gold futures fell 0.06% to 1,643.45 at press time.

Why It Matters

The president took to Twitter on Wednesday to clarify that the 30-day ban only applied only to people, not goods.

The travel restrictions come after the Dow entered a bear phase on Wednesday, dropping 5.9% to 23,552. 

Europe has been ravaged by the COVID-19 virus. Italy, the hardest hit, reported 12,462 cases with the death toll rising by 31% to 827 in 24 hours Wednesday.