Wall Street futures drop as Mnuchin nullifies lending schemes

Stock market futures in the United States had seen a dampened session on Thursday. This followed after Treasury Secretary Steven Mnuchin cancelled some of the Federal Reserve’s emergency lending program for the coronavirus pandemic.

Futures for the S&P 500 recorded a 0.75% drop. The plunge came after Mnuchin mandated the central bank to return the emergency lending fund allocated for businesses, nonprofits, and local governments. The lending scheme, deemed as the most effective crisis-response program for the economy, would be nullified on Dec. 31.

The U.S. 10-year Treasury yields also declined, indicating investors’ return to safe-have assets. Meanwhile, Wall Street’s major indexes advanced after Senate Minority Leader Chuck Schumer confirmed Senate Majority Leader Mitch McConnell’s interest in reviving stimulus talks.