US pre-open: Futures hit 'limit down' following Trump's address

US futures had stocks opening lower on Thursday, with trading briefly halted ahead of the bell for a second time this week.

As of 1220 GMT, Dow futures were down 5.22%, while S&P 500 and Nasdaq-100 futures had the indices opening 5.08% and 5.02% weaker, respectively.

The Dow closed 1,464.94 points lower on Wednesday, erasing the previous session's gains as coronavirus fears continued to roil shares and left the 30-stock average in a bear market - down more than 20% below its record close set only a month earlier and putting to end an expansion that started in 2009.

Futures hit "limit down" overnight following a 5% decline, triggering a halt on all three major US indices - a rule put in place to reduce panic after the previous system failed to prevent the May 2010 flash crash.

The losses came after Donald Trump fell short of silencing concerns regarding a possible economic slowdown stemming from the coronavirus.

The President also revealed that travel from Europe to the USA would be suspended for 30 days as part of the White House's response to the pandemic. He also vowed to provide financial support to workers who were ill, caring for others due to the virus or in quarantine.

However, market participants were hoping for a more detailed and robust fiscal response to curb potentially slowing economic growth.

IG's Joshua Mahony said: "In a week that has seen US markets reach the 5% limit up or down breaker twice, we are once again seeing the futures market point towards a likely limit down scenario as they approach the -5% mark.

"As the coronavirus spreads globally, a buy-the-dip mentality is falling away as the sheer scale of this crisis becomes apparent. For traders, chances to short indices and stocks provides the opportunity of a lifetime. However, from an investor’s perspective, cash is king until we see any light at the end of a darkening tunnel."

Also in focus was news that the National Basketball Association had chosen to suspend its season indefinitely after Utah Jazz centre Rudy Gobert tested positive for the virus.

On the macro front, initial jobless claims figures will be out at 1230 GMT.

No major corporate earnings were scheduled for release on Thursday.