Stocks set to drop at open following virus warning
S&P futures vs fair value: -92.90. Nasdaq futures vs fair value: -227.30. The second quarter for stocks is looking to begin a lot like the first quarter with the S&P 500 futures trading 93 points, or 3.6%, below fair value. Sentiment has been rattled after the White House coronavirus task force provided Americans a dire warning on the virus. The task force estimated that COVID-19 could lead to 100,000 to 240,000 deaths in the U.S. with daily deaths peaking in two weeks. The psychological effects this could have on consumers once the economy does slowly reopen is unquantifiable, but the forward-looking market is already doing its own calculations. Treasury investors, meanwhile, are returning to longer-dated maturities, which are deemed a safe-haven in economic uncertainty. The benchmark 10-yr yield is down nine basis points to 0.61%. The U.S. Dollar Index is up 0.6% to 99.68.