US pre-open: Futures point to losses as investors await updates on stimulus package

US futures were pointing to losses ahead of the open on Wednesday as investors awaited more details on the White House's rumoured economic stimulus plans.

As of 1220 GMT, Dow futures were down 2.44%, while S&P 500 and Nasdaq-100 futures had the indices opening 2.60% and 2.36% weaker, respectively.

The Dow closed 1,167.14 points higher on Tuesday, cutting in half losses seen in the previous session after coronavirus fears continued to roil shares.

Wednesday's focus was still centred on comments made by Donald Trump towards the end of the previous session. The President suggested a 0% payroll tax rate that could last until the end of 2020 in order to combat any potential economic fallout from the coronavirus outbreak. However, no dates were offered as to when such policies would be implemented.

Discussing the mood amongst traders on Wednesday, CMC Markets' Michael Hewson said: "Investors lost confidence that the US administration would be able to deliver a timely fiscal boost and President Trump went missing from an important White House briefing. As a result, US futures slid back sharply and markets in Europe also looked set for a lower open.

"Once again the focus is back on the politicians to deliver a fiscal response. For the last ten years, politicians have looked the other way as central banks have tried to take the strain on financial markets. The time to act is now and a failure to act on the part of politicians could well see markets deliver a brutal response."

In addition to the uncertainty surrounding any potential fiscal stimulus, a reduction in travel demand and rising coronavirus cases left airline and cruise line stocks under pressure - with American, Delta, United and JetBlue all down more than 2% ahead of the bell, while Norwegian Cruise Line and Carnival sunk 4.4% and 7% before the open, respectively.

In election news, former vice president Joe Biden has secured a solid lead over Vermont Senator Bernie Sanders in the race to become the next Democratic presidential nominee. Biden recorded convincing victories in party primaries in Missouri, Mississippi, Idaho and Michigan.

Both oil prices and Treasury yields were down before the open on Wednesday, with US crude dropping more than 2% to $33.51 per barrel and the yield on the benchmark 10-year US Treasury note slipped to 0.7%.

On the macro front, February's US consumer price index will be published shortly, while last month's budget statement will follow at 1800 GMT.

No major corporate earnings were scheduled for release on Wednesday.