Futures Plummet, Ugly Day On Street Expected

Another bad day for Wall Street…hang on for the ride!!

U.S. stock futures are pointing toward a very scary open for stocks for Friday’s trading session after Asian and European markets broadly sold off overnight on worldwide earnings and recession fears.

The Dow Jones Industrial Average futures were down 550 points, or 6.27%, to 8224 as of 8:45 a.m. here in New York. The S&P 500 futures were down 60 points, or 6.56%, to 855.20 while the Nasdaq 100 futures dropped 83.50 points, or 6.66%, to 1170. They have not moved from those levels since 5:00 this morning.

All the futures of the major indices have hit their limit down – where market regulations will not allow traders to sell the futures off more. They can trade above those levels, but cannot trade below those levels. It’s similar to the New York Stock Exchange’s circuit breakers – which were put into place to keep panic selling from destroying the stock market. In a piece of ominous trivia, today’s trading session marks the 79th anniversary of the 1929 stock market crash.

With fair value calculated into the futures, the Dow is expected to fall about 450 points at the 9:30 a.m. open, but with limit down affecting futures the opening will most likely be considerably worse.

“We’re all going to hold our breath and see what happens when they ring the opening bell,” NYSE trader Ben Willis of VDM Institutional Brokerage told FOX Business.

The prices on all categories of bonds – from short-term Treasury bills to 30-year Treasury bonds – were all sharply higher this morning as investors piled in to the safety of U.S. government-backed bonds.

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