(Bloomberg) -- The Federal Reserve's drastic easing measures Sunday are doing little to stem the market bleeding, judging by some of the world's largest exchange-traded funds.
The SPDR S&P 500 ETF Trust, a $248 billion product that tracks the American equity benchmark, slumped 9.1% as of 5:08 a.m. New York time in pre-market trading. The tech-heavy Invesco QQQ Trust fund, which tracks the Nasdaq 100 benchmark, slid 8.3%.
The moves are a key indicator for what U.S. stocks will do at the open since futures for the main equity gauges are trading at their lower limits.
Read more: U.S. Stock Futures Drop to Limit Down With S&P 500 ETF Plunging
Treasuries surged and European and Asian shares tumbled on Monday as the widening economic shock from the coronavirus became evident over the weekend, with nations and corporates taking increasingly drastic measures to curb the outbreak. E-mini futures on the S&P 500 Index hit trading limits to drop 4.8% while Nasdaq contracts were down 4.6%, after both indexes soared on Friday in response to stimulative fiscal moves in the U.S.
“While these moves may go some way to easing any potential blockages in the plumbing of the financial markets, they won't adequately compensate for the upcoming economic shocks,” Michael Hewson, chief market analyst at CMC Markets UK, wrote in a note, referring to the Fed's action.
To contact the reporter on this story: Justina Lee in London at jlee1489@bloomberg.net
To contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, Justina Lee, Sid Verma
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