March 11, 2020 / 1:17 PM / a month ago

US STOCKS-Wall St set for sharp declines on lack of stimulus details

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* Futures shrug off BoE rate cut, CPI data

* U.S. lenders JPMorgan, Morgan Stanley fall

* Futures down: Dow 3.07%, S&P 3.21%, Nasdaq 2.84% (Adds comment, updates prices)

By Medha Singh and Sanjana Shivdas

March 11 (Reuters) - U.S. stock indexes were on track to open sharply lower, with the S&P 500 on the edge of confirming bear market territory, on skepticism about President Donald Trump’s stimulus plan to combat the coronavirus outbreak.

Expectations that Trump would announce “major” stimulus measures helped Wall Street rebound on Tuesday from a bruising sell-off at the start of the week, as a plunge in oil prices compounded fears of a global recession.

While Trump met with fellow Republicans in the U.S. Senate on Tuesday and discussed a payroll tax cut, no concrete measures have been announced. Any plan the White House introduces will need to be approved by both houses of the U.S. Congress.

“This has to be a co-ordinated effort,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

“The President cannot unilaterally take action. He needs Congress, which is the financing arm of the government.”

The rapid spread of the virus has galvanized central banks and governments to roll out measures to cushion its fallout. The Bank of England became the latest central bank to cut interest rates.

Gold, a perceived safe haven asset, rose 1% as fears over the economic toll of the outbreak weighed on sentiment.

The U.S. Federal Reserve is expected to cut rates for the second time this month when it meets next week, pressuring Treasury yields further.

Rate-sensitive U.S. lenders tumbled, with Citigroup Inc , JPMorgan Chase & Co and Morgan Stanley down between 2.2% and 3.7% in premarket trade.

At 9:05 a.m. ET, Dow e-minis were down 763 points, or 3.07%. S&P 500 e-minis were down 92 points, or 3.21% and Nasdaq 100 e-minis were down 236.25 points, or 2.84%.

Goldman Sachs predicted a 28% slump for the benchmark S&P 500 from its February peak as virus concerns escalate.

On Wednesday, the index was set to open about 18% below its all-time high hit just three weeks ago. If it slips below 20% during trading hours, it will confirm bear market territory.

Nike Inc fell 5.2% after rivals Adidas and Puma flagged a sales hit in China due to the outbreak.

DXC Technology Co jumped 9.7% after the IT and consulting services provider said it would sell its healthcare technology business to private equity firm Veritas Capital for $5 billion. (Reporting by Medha Singh and Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)

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