A man walks by the Wall Street subway sign on March 23, 2020 in New York City.
Angela Weiss | AFP | Getty Images
U.S. stock futures rose on Sunday night as Wall Street tried to recover from another decline last week while investors shook off rising tensions between Saudi Arabia and Russia.
Dow Jones Industrial Average futures traded more than 200 points higher, or 1.2%. S&P 500 and Nasdaq 100 futures also climbed more than 1%.
The meeting between OPEC and Russia was scheduled for Monday, but sources familiar with the matter told CNBC it will “likely” take place Thursday. The delay comes after President Donald Trump told CNBC last week he expected both countries to cut production by up to 15 million barrels.
Trump’s comments helped U.S. crude post its biggest-ever weekly gain. West Texas Intermediate futures rallied 12% last week. WTI also jumped 24% on Thursday for its best day on record, lifting equity prices that day as concern about financial and job losses in the energy sector eased.
Crude has taken a beating this year as Saudi Arabia-led OPEC and Russia failed to reach a deal on production cuts while the global spread of the coronavirus dampens the demand outlook for oil. Year to date, WTI has lost more than half of its value.
More than 1.2 million coronavirus cases have been confirmed, according to Johns Hopkins University. The U.S. is by far the country with the most cases at over 330,000. On Saturday, Trump warned “there will be a lot of death,” noting the U.S. faces its “toughest week” in its fight against the virus.
In New York, the state with the most confirmed cases, the death toll has risen to 4,159 from 3,565 on Saturday, Gov. Andrew Cuomo said Sunday. New York City Mayor Bill De Blasio also said the city will likely run out of ventilators for coronavirus patients by Wednesday.
The outbreak has sent equities tumbling since hitting record highs in February. The Dow, S&P 500 and Nasdaq Composite are all down more than 25% since then, trading deep in bear market territory. Last week, the major averages posted their third weekly decline in four.
To be sure, there may be some positive news on the virus front. The number of coronavirus-related hospitalizations has fallen slightly in New York while discharges are up, Cuomo said Sunday. Italy also reported Sunday its smallest daily increase in deaths in two weeks.
Marc Chaikin, CEO of Chaikin Analytics, advises investors to remain cautious, however.
“Until the spread of the COVID-19 virus peaks and we are closer to a reopening of the U.S. economy, sell rallies and sit on your cash,” said Chaikin. “If we are fortunate to see an effective treatment there will be plenty of capital gains opportunities. For me, capital preservation is more important than capital gains.”
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