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. The stock market has swung wildly due to fears of economic damage caused by the Covid-19 outbreak. On March 5, 2020, an article in
. The stock market has swung wildly due to fears of economic damage caused by the Covid-19 outbreak. On March 5, 2020, an article in the Wall Street Journal observed that "futures linked to the Dow Jones Industrial Average fell 1.8%, suggesting that the gauge for blue-chip stocks may open over 500 points lower when trading opens in New York". Why might falling futures be an indication that DJIA might fall after market opens? Use what we have learned about futures price and spot price to explain.
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