US Stocks Set To Recover Monday As Futures Surge After A Week of Decline

The United States stocks seem to head for a recovery when markets open on Monday as futures contracts posted significant gains earlier in the day.

What Happened

The futures recovered after a turbulent week where markets tanked in response to the worsening situation over the novel coronavirus (COVID-19) pandemic in the country.

Dow Jones lost 2.7% through the course of last week, S&P 500 lost 2.1%, and the Nasdaq Composite index slid about 1.7%.

The futures posted gains even as there's no immediate clarity over the further economic impact of the coronavirus outbreak. The number of new COVID-19 cases being reported in a day reduced in New York on Sunday, signaling that the spread of the virus may have peaked out in the state.

There are 337,646 confirmed COVID-19 cases, including 9,648 deaths, in the U.S., according to data from Johns Hopkins University.

Hedge fund billionaire Bill Ackman on Sunday said that he was "beginning to get optimistic" about the end of the pandemic and its economic impact.

Others, including Creative Planning President Peter Mallouk, believe that this is just temporary volatility in the market and doesn't signal the peak of the economic fallout.

"We are going to see more volatility and we're going to see it until we have a clear vision on what's going to happen with the coronavirus," Mallouk told Bloomberg.

"Everyone keeps trying to talk about this economic data as if we can look at it the way we look at it normally. Really, you can't look at it that way."

JPMorgan Chase & Co. JPM analysts noted that the number of new coronavirus cases getting peaked in the U.S. would put a floor under stocks trading and ease further volatility, Bloomberg reported Sunday.

Price Action

The S&P 500 futures traded 4.05% higher at 2,583.25 at press time. The Dow Jones futures were up 853 points at 21,810. Nasdaq 100 futures traded 4.29% higher at 7,845.25.

The U.S. dollar gained 0.74% against the Japanese yen at 109.26.